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India LPG Crisis 2026: Ethanol Emerges as a Domestic Cooking Fuel Alternative

India's ongoing Liquefied Petroleum Gas (LPG) crisis has exposed the vulnerability of the country's cooking fuel supply chain, prompting renewed calls for diversification and a stronger push toward domestic alternatives such as ethanol. The disruption stems largely from geopolitical tensions in West Asia, particularly the conflict involving Iran, which has slowed shipments passing through the strategically vital Strait of Hormuz. The narrow maritime corridor handles a major share of India's LPG imports from Gulf nations, and delays there have triggered shortages and price increases across the country. Supply Disruptions Hit Households and Businesses India consumes roughly 31-32 million tonnes of LPG annually, with about 87 percent used in domestic kitchens. However, the country imports 60-65 percent of its LPG, primarily from Saudi Arabia, Qatar, the United Arab Emirates and Kuwait. Most of these supplies transit the Strait of Hormuz, making India highly exposed to disruptions in the region. Government Moves to Stabilize Supplies In response, the government has taken several measures to stabilize the situation. Authorities have invoked the Essential Commodities Act to curb black-marketing and hoarding. Refineries have been directed to increase LPG production by diverting propane and butane streams, raising domestic output by an estimated 25-30 percent. The government has also prioritized household consumption over commercial and industrial use while urging consumers to avoid panic buying. Where available, households and businesses are being encouraged to shift to piped natural gas (PNG). Meanwhile, India has moved to secure alternative imports from countries including the United States, Russia, Norway and Canada, with some cargo shipments already en route. Officials say domestic stocks remain sufficient and households are unlikely to face complete supply outages. However, analysts say the situation highlights long-standing structural weaknesses in India's LPG ecosystem-namely heavy import dependence, limited strategic storage and exposure to global geopolitical shocks. Ethanol Emerges as Potential Alternative Amid the crisis, energy experts and policymakers are revisiting the possibility of ethanol as a domestic cooking fuel. I have first-hand experience with the use of ethanol as a cooking fuel in Ethiopia in 2015, where our team successfully designed and implemented a small-scale ethanol production facility with a capacity of 1,000 litres per day to support rural households. The initiative was carried out with support from the World Bank and the Stockholm Environment Institute, in collaboration with Project GAIA. The project aimed to provide a clean and sustainable cooking fuel while reducing the burden on women who were traditionally responsible for collecting firewood for household energy needs. India already produces more than 1,800 crore litres of ethanol annually, largely from sugarcane and grain-based feedstocks. The government's Ethanol Blended Petrol programme has rapidly expanded, achieving close to 20 percent blending in petrol, ahead of earlier targets. Advocates argue that ethanol could play a complementary role in the household cooking sector. Energy economists say expanding ethanol use in kitchens could reduce LPG import dependence, lower subsidy burdens and cut emissions, while also supporting farmers through increased demand for agricultural feedstocks. Policy and Infrastructure Challenges Despite its potential, ethanol-based cooking faces several challenges. These include the cost and availability of cookstoves, distribution systems, safety standards and consumer awareness. A Wake-Up Call for Energy Security Energy analysts describe the current LPG disruption as a warning about the risks of relying heavily on imported fuels for essential household needs. While short-term steps such as boosting domestic output and securing alternative imports may stabilize the market, experts say long-term resilience will require a broader mix of cooking energy sources. With existing production capacity and infrastructure already in place, ethanol could emerge as one of the key alternatives in India's energy transition-potentially powering not just vehicles, but kitchens as well. As policymakers search for solutions to the present crisis, the debate over ethanol cookstoves is gaining momentum, raising the possibility that India's next cooking fuel revolution could be homegrown. Rajneesh Tyagi is a Saskatoon, Saskatchewan-based Indo-Canadian entrepreneur, executive, and innovator with a focus on bioenergy, biofuels, and sustainability. Since early March 2026, the crisis has led to several visible effects: Key advantages cited include: Experts suggest several policy steps to accelerate adoption:

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