India’s cooking fuel system is facing a major energy security test as global supply disruptions expose the risks of relying heavily on imported liquefied petroleum gas and natural gas. An analysis by the Institute for Energy Economics and Financial Analysis says India must shift from a single-fuel fossil model to a diversified clean cooking strategy built around electricity, domestic renewables, biogas and decentralized energy systems.
The report says the crisis has highlighted the vulnerability of India’s LPG-dependent cooking fuel architecture. Export volumes through the Strait of Hormuz fell by nearly 80 percent, dropping from 1.5 million barrels per day to 0.3 million barrels per day. India’s LPG imports declined by more than half during the initial months of the disruption, creating a supply deficit of about 430,000 barrels per day.
India’s strategic LPG reserves cover just over 10 days of national consumption. The government responded by asking domestic refineries to maximize output, adding around 180,000 barrels per day. It also directed that commercial customers receive at least 70 percent of their pre-crisis volumes. However, unregulated market prices rose sharply, increasing pressure on households and businesses.
This is a serious concern because about 80 percent of Indian households rely on LPG. Since 2010, India and Indonesia have helped move more than 800 million people away from traditional biomass cooking. Rising LPG prices could push low-income families back toward firewood, dung cakes and other polluting fuels, Purva Jain, Lead Energy Specialist, Gas & International Advocacy, South Asia at IEEFA, said.
PNG Expansion Does Not Solve Import Dependence
India has responded by accelerating piped natural gas connections and encouraging some households to surrender LPG connections. Nearly 300,000 new PNG connections have been added, while about 6,000 households have moved away from LPG.
IEEFA warns that this strategy only shifts dependence from one imported fossil fuel to another. PNG remains exposed to global gas prices, shipping risks and geopolitical disruptions. A dual-fossil fuel LPG-PNG system may improve distribution flexibility, but it does not remove India’s structural import vulnerability.
Electric Cooking Emerges as Cost-Effective Alternative
IEEFA identifies electric cooking as one of the strongest alternatives for urban India. In Delhi, the annual cost of e-cooking for a family of four was estimated at ₹5,844 during FY2024-25. This was 10 percent cheaper than universally subsidized LPG and 14 percent cheaper than PNG.
As hydrocarbon prices increased through 2025 and 2026, e-cooking became about 25 percent cheaper than subsidized LPG. This gives India a strong economic case for expanding induction cooking, especially in cities with reliable electricity access.
The grid impact is also manageable. India’s commercial kitchen sector consumes 2.6 million tonnes of LPG annually. Shifting this segment to electric appliances with 85 percent efficiency would require about 1.63 billion units of electricity per month, equal to just 1 percent of India’s monthly electricity consumption of around 150 billion units.
Government estimates suggest wider household adoption of induction cooking during supply crises would require an additional 13 GW to 27 GW of generation capacity. This can be supported by smart grids, two-way meters and time-of-day tariffs.
Clean Power Investment Supports E-Cooking Growth
India’s power sector is already moving toward non-fossil capacity. Over the past decade, the investment ratio between fossil and non-fossil power capacity has shifted from 1:1 to 1:4. This helped India reach its Paris Agreement milestone of 50 percent cumulative installed power capacity from non-fossil sources ahead of schedule.
Tata Power and other utilities are investing in AI-enabled smart grids, digital energy systems and demand forecasting tools that can support localized demand growth from electric cooking.
Domestic manufacturing is also strengthening. Production-linked incentives have helped India’s solar module manufacturing capacity exceed 118 GW. This supports programs such as the $8.5 billion PM Surya Ghar Muft Bijli Yojana, which can help households power appliances through rooftop solar.
LNG Infrastructure Remains a Medium-Term Bridge
India is also expanding gas infrastructure to raise natural gas share in the energy mix from about 6.5 percent to 15 percent by 2030.
GAIL is spending ₹10,500 crore to ₹12,000 crore annually on pipeline expansion, pushing its network beyond 18,000 km. It is also securing nearly 16 million tonnes per annum of long-term supply and expanding the Dabhol LNG terminal to 6.3 million tonnes per annum, with a long-term target of 12.5 million tonnes per annum.
Petronet LNG, which handles about 75 percent of India’s LNG imports and one-third of national gas supply, has crossed ₹20,000 crore in net worth. The company has signed a ₹12,000 crore loan agreement and long-term regasification contracts with ONGC and Mahanagar Gas.
However, the Iran war fuel crisis has exposed the risks of this bridge strategy. QatarEnergy’s force majeure at Ras Laffan and Strait of Hormuz disruptions caused India’s monthly LNG imports to fall by nearly 30 percent year-on-year.
Petronet has responded by sourcing cargoes from Australia, Mozambique, Oman, Congo, Nigeria, Senegal and Norway. It is also planning three to seven new LNG containment tanks to improve storage resilience.
Biogas Can Support Rural Clean Cooking
IEEFA says rural India needs decentralized solutions because electric cooking may not be immediately practical in all regions. Bio-CNG and biogas can reduce dependence on firewood while supporting local waste-to-energy systems.
GAIL is planning 25 to 30 commercial biogas plants across multiple states. One proposed plant in Sultanpur, Uttar Pradesh, is designed to process agricultural residue into 20 tonnes of bio-CNG per day.
Field studies show decentralized biogas systems can reduce household firewood dependence by about 70 percent. This makes biogas an important rural complement to urban electric cooking.
India Needs Clear 2030 Clean Cooking Targets
IEEFA recommends that India move beyond short-term subsidies and adopt clear technology-specific clean cooking targets by 2030.
A resilient strategy should combine e-cooking in cities, rooftop solar-backed appliances, decentralized biogas in rural regions, bio-CNG networks, stronger domestic manufacturing and strategic fuel reserves.
The report’s central message is clear: India cannot protect consumers from global fuel shocks by replacing one imported fossil fuel with another. A diversified clean cooking system powered by domestic renewable energy is essential for energy security, affordability and long-term public health.
FASNA SHABEER