As the Iran-Israel war enters its third week, India faces acute liquefied petroleum gas (LPG) shortages, prompting hoarding crackdowns and panic buying. Government officials assure sufficient stocks, but reports from various states highlight supply chain disruptions. Brent crude prices have surged to $103.14 per barrel, intensifying the crisis.
The Iran-Israel war, which began on February 28, 2026, has disrupted the Strait of Hormuz, hindering global energy supplies. India, reliant on imports for much of its energy, is now grappling with liquefied petroleum gas (LPG) shortages.
On the night of March 13, 2026, the Indian-flagged LPG carrier Shivalik crossed the Strait of Hormuz with over 54,000 tonnes capacity from Qatar, bound for the U.S. The Indian Navy denied reports of naval escort. This cargo could equal nearly one day of India's LPG imports.
Haryana Minister of State for Food and Civil Supplies Rajesh Nagar stated that supplies of petroleum products, including domestic LPG, are completely normal. He warned of strict action against rumor-mongering and black marketing. The Gujarat government decided to provide piped natural gas (PNG) connections to institutions.
However, 741 LPG cylinders were seized from 102 locations in Chhattisgarh amid hoarding crackdowns. In Tiruchi, auto LPG scarcity affects 9,000 autorickshaw drivers. Several eateries in Bengaluru shut down. Andhra Pradesh Finance Minister Payyavula Keshav advised hoteliers to trim menus and adopt rotational operations. Security was enhanced outside gas agencies in Delhi amid panic lines.
Joint Secretary at the Ministry of Petroleum and Natural Gas Sujata Sharma said LPG imports are a 'slight issue of concern' with no dry-outs reported, urging no panic booking. Jindal Stainless Managing Director Abhyuday Jindal noted plants are operating at rationalized capacity due to fuel constraints.
Benchmark indices slipped 2%, with Nifty closing at 23,151.10 and Sensex at 74,563.92. Brent crude rose 42% to $103.14 per barrel.
