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India scrambles to steady oil, LPG supplies as Iran war disrupts energy routes

Petroleum minister Hardeep Singh Puri said India’s crude supply remains secure, noting that about 70% of the country’s oil imports now come from routes that bypass the Strait of Hormuz, the narrow Gulf passage threatened by the conflict

Our Webdesk And Agencies
Published 13.03.26, 01:51 AM

India moved to reassure consumers and stabilise fuel supplies on Thursday as the war in West Asia disrupted shipping routes and triggered panic buying of cooking gas in several cities.

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People stand in a queue with their empty LPG cylinders outside a gas agency amid supply disruptions following the U.S.-Israeli conflict with Iran, in Ahmedabad, India, March 12, 2026. Pictures from Reuters, AP/PTI

Petroleum minister Hardeep Singh Puri said India’s crude supply remains secure, noting that about 70% of the country’s oil imports now come from routes that bypass the Strait of Hormuz, the narrow Gulf passage threatened by the conflict.

A sign that shipping through the region has not completely halted came as a Liberia-flagged tanker carrying crude oil reached Mumbai after crossing the war-hit Strait of Hormuz, one of the first India-bound vessels to make the journey since attacks on merchant shipping escalated.

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The Liberia-flagged Suezmax tanker Shenlong carrying crude oil berths at the Jawahar Dweep terminal of Mumbai Port in Mumbai, Thursday, March 12, 2026.
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Officials also said Tehran has indicated it would allow Indian and other vessels to pass through the strait if their movement is coordinated with the Iranian military, potentially easing some pressure on supply routes.

Despite government reassurances on crude availability, the conflict has triggered panic buying of liquefied petroleum gas (LPG) in several cities, with long queues reported outside gas agencies as consumers rushed to refill cylinders.

To manage the situation, the government has prioritised household LPG supply and curtailed distribution to commercial users, directing refineries to maximise production while urging restaurants and other businesses to temporarily shift to alternative fuels such as kerosene, biomass or coal.

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Dacres' Lane eateries face operational uncertainty, shutdown due to LPG shortage

The curbs have begun to squeeze the hospitality sector, with some eateries reporting shortages of commercial cylinders and reduced operations as authorities try to conserve supplies for domestic consumers.

Officials say petrol, diesel and LNG supplies remain stable for now, but analysts warn that prolonged disruption around the Strait of Hormuz could continue to test India’s energy security if the conflict drags on.

India LPG Crisis Oil Supply
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