Indian Oil Corp. has made its first LPG purchase from Iran in nearly eight years, as the country struggles to cope with a severe LPG shortage. The shortage, exacerbated by the Iran war, has forced some Indians to use firewood for cooking and led to fights in lines for LPG cylinders.
The refiner will share the shipment with state-owned peers Bharat Petroleum Corp Ltd. and Hindustan Petroleum Corp Ltd. The cargo, approximately 43,000 tons of butane and propane, would only meet half a day's demand in India.
The LPG shortage has prompted New Delhi to curtail supplies to commercial users and invoke emergency measures to accelerate the development of natural gas pipelines.
The purchase is the first Indian energy deal with Iran since the US issued a temporary waiver allowing the country to buy crude oil or petroleum products from the Islamic Republic.
India is also in the final stages of negotiations for the safe passage of two more LPG cargoes through the Strait of Hormuz.
