Archive · 29 Jul 2026
India's Methanol Prices Surge Amid West Asia Conflict
India's methanol prices have more than doubled in the first quarter of FY27 due to a conflict in West Asia.
This conflict has disrupted methanol production in the Gulf, raised shipping costs, and forced India to look for alternative suppliers.
India imports about 98% of its methanol, and the conflict has led to a significant shift in supply sources.
The Middle East's share in India's methanol imports has dropped, while China and other countries have increased their supplies.
Despite these efforts, the overall availability of methanol has decreased, leading to a sharp increase in prices.
The Indian government has taken steps to reduce dependence on imports by waiving tariffs on methanol and investing in domestic production.
India's methanol landed price surged 114% to $569 per tonne in Q1 FY27 due to West Asia conflict.
Middle East's share in India's methanol imports dropped to 51% from 88% year-on-year.
India diversified methanol imports to China, Venezuela, Malaysia, Russia, Japan, and Algeria.
Global methanol output affected by over 4.5 million tonnes due to Gulf production curtailment.
Domestic methanol prices surged 182% to ₹73,950 per tonne in May.
- Who
- India, Middle East, China, Venezuela, Malaysia, Russia, Japan, Algeria
- What
- Methanol price surge due to West Asia conflict
- When
- First quarter of FY27 (April-May 2026)
- Where
- India, Middle East, China, Venezuela, Malaysia, Russia, Japan, Algeria
- Why
- Conflict in West Asia disrupted Gulf production, raised shipping costs, and forced buyers to tap alternative suppliers.
Supply Diversification
Price Volatility
Supply Diversification
Supply Diversification
India has successfully diversified its methanol imports to include China, Venezuela, Malaysia, Russia, Japan, and Algeria to mitigate supply disruptions.
Price Volatility
Despite diversification efforts, the overall availability of methanol has sharply contracted, leading to significant price increases.
Price Volatility
Supply Diversification
The diversification of supply sources has helped stabilize prices to some extent by providing alternative sources of methanol.
Price Volatility
The conflict in West Asia has caused a significant surge in methanol prices, with CFR India prices rising 130% year-on-year in April and 141% in May.
- Q1 Methanol Price
- $569 per tonne
- Year-on-Year Increase
- 114%
- Middle East Share in Imports
- 51% (March-May 2026)
- India's Methanol Imports
- 98% of domestic requirement
- Global Methanol Output Affected
- More than 4.5 million tonnes
- Domestic Methanol Price Increase
- 182% to ₹73,950 per tonne in May
- Price Outlook for FY27
- $380-420 per tonne