Argentina is stepping up as a crucial LPG supplier to India, helping to address shortages caused by the ongoing conflict in West Asia and disruptions to global energy supply chains.
Key Points
- Argentina has more than doubled its LPG exports to India in early 2026 to offset supply disruptions from the West Asia conflict.
- The war in West Asia has disrupted global LPG supply chains, impacting Indian households and commercial establishments.
- India relies heavily on the Strait of Hormuz for LPG imports, which have been affected by the Iran war.
- The LPG shortage in India has led to delays in cylinder deliveries, business closures, and job losses, particularly affecting migrant workers.
- Argentina is emerging as a key economic partner for India in South America, with bilateral trade increasing significantly.
To overcome the shortage of Liquefied Petroleum Gas in the country due to West Asia war situation, Argentina has stepped in with more supplies.
The country shipped 50,000 tonnes of LPG to India in the first three months of 2026, more than double the 22,000 tonnes supplied in 2025.
According to a report in The Economic Times newspaper, nearly 39,000 tonnes were dispatched from the Port of Bahia Blanca before the outbreak of the war, with another 11,000 tonne cargo shipped on March 5.
There were no LPG shipments from Argentina to India before 2024, and in just two years Argentina is becoming a key economic partner for India in South America.
The Economic Times report stated that bilateral trade rose 36.77 percent to $6.34 billion from January to November 2025.
India is Argentina’s fifth largest trading partner and export destination.
The ongoing war in West Asia, which began in late 2025, has played a major role in disrupting global LPG supply chains.
As tensions escalated across key energy-producing regions, shipping routes were affected and supply uncertainties increased especially due to the closure of Strait of Hormuz by Iran.
The Strait of Hormuz is the key water point from where 85 percent of India’s LPG was being imported from Qatar and other middle east countries.
Impact of LPG Shortage on Indian Households and Businesses
After the war started, the resultant LPG shortage has had a direct impact on households across the country.
Where LPG cylinders were earlier delivered within a few days of booking, many homes are now waiting between two and three weeks to receive a refill.
In some areas, delays have extended further, creating daily challenges for families dependent on LPG for cooking.
Commercial establishments have been severely affected by the supply disruption. Restaurants, small eateries, and catering services have been forced to cut down operations or shut completely due to the lack of LPG supply.
Many businesses report that they are unable to secure regular refills, making it unsustainable to continue operations.
Industrial Impact and Economic Consequences
The industrial sector, particularly in some parts of Gujarat, has also been hit hard.
Factories that rely on LPG for manufacturing processes have slowed production or shut down entirely.
As a result, many workers, especially migrant labourers, are returning to their hometowns due to job losses and uncertainty, highlighting the broader economic impact of the ongoing war crisis.
© 2026