India improvising on the fly as Strait of Hormuz waters remain still

What happened: Strait of Hormuz constraint drives India’s energy routing and LPG logistics improvisation

India is adjusting its energy supply and trade logistics as the Strait of Hormuz remains effectively constrained after the war began. Reduced shipping throughput through the strait, together with attacks that cut daily shipping capacity, affects how India sources crude and LPG and how India schedules deliveries.

The analysis highlights India’s limited strategic buffers. India is described as having limited strategic oil reserves and almost no strategic gas reserves, which increases dependence on operational adjustments such as shifting supply sources, reducing consumption, and using additional processing capacity.

The analysis describes India’s coping actions under the constrained corridor: using alternative sourcing for crude (including Russian crude) and LPG (including U.S. LPG), reducing demand through demand destruction (consumption reduction), expanding refinery throughput (refinery expansion), and rerouting shipments toward the U.S. route where possible.

The analysis links shipping constraints to LPG pricing stress. It states that India lacks enough vessels to fully self-rely on the longer U.S. route, so LPG delivery still depends on other carriers. This dependence is described as contributing to higher freight costs and LPG cylinder price pressure.

The analysis describes continued but reduced movement of cargo through Hormuz. It states that Hormuz flows are far below pre-war levels and mentions industry estimates that some millions of barrels still leave the region. It also discusses estimates about remaining vessels carrying cargo west of the strait and the share and type of ships transiting.