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Bisnis | Ekonomi - Posted on 31 March 2026 Reading time 5 minutes
India Faces Renewed Energy Pressure as LPG Supply Disruptions Persist
India is facing renewed pressure in its energy sector after supplies of liquefied petroleum gas (LPG) have experienced significant disruptions in recent months. The situation has prompted the government to revert to kerosene as an emergency solution, particularly to meet household energy needs in rural areas and among low-income groups. The crisis has been driven by surging global energy prices and ongoing supply chain disruptions, making LPG—once a cornerstone of the country’s clean energy program—increasingly unaffordable for segments of the population.
Policy Reversal Amid Supply Constraints
Previously, the Indian government had actively promoted the use of LPG as part of its energy transition strategy aimed at reducing pollution from traditional fuels. However, the current supply pressures have forced a short-term shift in policy direction. The government is now increasing the distribution of subsidized kerosene to maintain stability in domestic energy consumption. This move is seen as a rapid response to mitigate the impact of the crisis, although it may carry longer-term consequences.
Rising Prices and Subsidy Burden
The increase in global LPG prices has significantly raised the government’s subsidy burden. Under these conditions, authorities are required to adjust energy distribution strategies in order to preserve household purchasing power. In addition, the depreciation of the domestic currency and high energy import costs have further intensified the pressure. India’s reliance on LPG imports makes prices more vulnerable, while kerosene is considered more flexible within short-term subsidy frameworks.
Social and Environmental Implications
The return to kerosene usage brings several implications that warrant attention, including rising carbon emissions, deteriorating indoor air quality, and increased health risks for communities. At the same time, the policy may slow the country’s clean energy transition agenda. Nevertheless, the measure is viewed as necessary to maintain social stability amid mounting economic pressures.India’s situation reflects a broader dilemma faced by many developing countries. When global energy prices surge, policy priorities often shift from sustainability toward affordability. This trend highlights that the energy transition process does not always proceed smoothly, particularly when confronted with geopolitical shocks and global economic pressures.
Short-Term Pragmatism vs Long-Term Sustainability
The worsening LPG crisis has forced India to adopt a pragmatic approach by reverting to kerosene as an alternative energy source. While effective in the short term, the policy risks hindering progress toward cleaner energy goals. Looking ahead, the key challenge for developing economies will be to balance the need for affordable energy with commitments to sustainability amid ongoing global market volatility.
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