India-flagged vessels carrying liquefied petroleum gas (LPG) were observed sailing through the Strait of Hormuz close to Iran’s coast on Monday, indicating that Tehran is allowing limited transit for select Indian shipments despite ongoing disruptions in the region.

The passage comes at a critical time for India, where roughly 60% of households depend on LPG for cooking. About 90% of the country’s LPG imports normally pass through the Strait, making any disruption immediately visible in domestic supply.

Recent data cited by The Hindu shows LPG demand in India has dropped sharply—down 17% compared to last year and 26% from early February levels—highlighting the impact of supply constraints and rationing.

To cope with the shortage, authorities have reduced LPG allocations to commercial users and industries, diverting more supply toward households.

Tracking data shows that two large gas carriers, Jag Vasant and Pine Gas, moved from the UAE toward Iran’s Qeshm and Larak islands along the northern side of the Strait. Both vessels signaled Indian ownership and are likely heading onward toward India.

At the same time, LPG exports from the Gulf have fallen to their lowest levels in at least a year, according to maritime analytics firm Windward. Around 1.5 million barrels were loaded over the past week, mostly bound for Asian markets.

Windward also noted a shift in shipping routes, with LPG and bulk carriers increasingly navigating through Iranian-controlled waters rather than traditional channels—suggesting Iran is playing a more active role in managing access through the Strait.