New Delhi, Mar 15: Geopolitical tensions in West Asia are creating fresh challenges for India’s energy sector, particularly in the supply of Liquefied Petroleum Gas (LPG), a key fuel used in households and commercial establishments.

The government does not expect a substantial impact on inflation from the recent surge in global crude oil prices triggered by the escalating conflict in West Asia. According to Finance Minister Nirmala Sitharaman, the price of the Indian crude oil basket increased from $69.01 per barrel at the end of February to $80.16 in early March 2026. Despite the sharp rise, the government believes the impact on domestic inflation will remain limited for now.

India remains heavily dependent on energy imports. The country imports nearly 88% of its crude oil and around 50% of its natural gas, making it vulnerable to global market fluctuations and geopolitical tensions.

A major concern is the disruption of shipments through the Strait of Hormuz, a crucial maritime route that carries a large share of global LPG and oil supplies. Ongoing conflict in West Asia has slowed tanker traffic, affecting deliveries to several countries including India.

To maintain supply stability, Union Petroleum and Natural Gas Minister Hardeep Singh Puri assured that the government has taken measures to ensure uninterrupted 100% supply of CNG and PNG for households and 70–80% supply for industries, urging citizens not to panic.

India has also been expanding its supplier network and exploring alternative import sources such as Russia, the United States, West Africa and Latin America to reduce dependence on the Gulf region.

Experts state that, India’s strategic petroleum reserves, improved storage facilities and diversified sourcing strategy may help cushion the impact of global supply disruptions. However, continued instability in key shipping routes could still put pressure on LPG availability and prices in the coming months.

Complied by:Satabisha Jena