- By Raju Kumar
- Tue, 17 Mar 2026 12:04 PM (IST)
- Source:JND
Fuel Crisis: The US-Iran war entered its 18th day, with fuel supply remaining a top concern worldwide, including in India. The government initiated several measures to control the situation. In the last couple of days, India made a slight change in its stance on the ongoing war in the Gulf region, increasing engagement with Iran to ensure the safe passage of the India-bound vessels, which yielded some positive results amid the LPG cylinder shortage.
An Indian vessel, Shivalik, carrying LPG, safely reached Mundra port, Gujarat from the Strait of Hormuz amid the West Asia crisis due to the deep diplomatic ties with Tehran. The ship passed safely through the Strait of Hormuz amid armed conflict. Mundra Port officials confirmed that Shivalik arrived with 46,000 metric tonnes of LPG ordered by IOCL. While 20,000 MT will be unloaded at Mundra port, 26000 MT will be unloaded at Mangaluru, said a statement from the port. Another ship, Nandadevi, had similarly passed safely through the Strait of Hormuz and reached Vadinar port in Gujarat on Tuesday.
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22 Indian-flagged vessels with 611 seafarers remain west of the Persian Gulf region and are being monitored by the Directorate General of Shipping.
How Would A Prolonged US-Iran War Affect India?
India imports about 88 per cent of its crude oil, 50 per cent of its natural gas and 60 per cent of its LPG needs. Before the US-Israel strikes on Iran on February 28, more than half of India's crude imports, about 30 per cent of gas and 85-90 per cent of LPG imports came from Middle East countries such as Saudi Arabia and the UAE. The conflict has led to a blockade of the Strait of Hormuz, the main transit route for Gulf energy supplies. Thus, a prolonged war in the region means big trouble for India.
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Why Should India Reconsider Its Fuel Strategy?
The US and Iran engaged in armed conflict for the second time within eight months, affecting the global fuel supply. Even after the war ends, the Strait of Hormuz will remain a vulnerable checkpoint. The hostility in the key passage put India's LPG (Liquefied Petroleum Gas) supply under significant pressure, as India imports a large share of its needs from the Middle East.
In such a situation, India needs to find other options to address the LPG shortage. Here are some alternatives that India should explore:
Diversification: India should establish long-term agreements with other nations, like the USA, Russia, Australia and African countries, reducing dependency on the Gulf countries.
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Domestic LPG Production: India, perhaps, has experienced for the first time such a severe scarcity of LPG after the Covid crisis. The experience gave a big lesson to India. Amid the crisis, the government directed refineries to increase LPG output. Joint Secretary for the Ministry of Petroleum and Natural Gas Sujata Sharma recently confirmed that India’s LPG production has increased by 28 per cent following several government measures aimed at boosting domestic supply for household consumers.
Alternative Fuels: The government should promote some alternatives to LPG. Induction cooktops, electric cooking gas, solar cookers and electric appliances (rice cookers and hot plates) could be adopted to deal with the shortage of LPG. The usage of these alternatives may reduce pressure on the LPG cylinders.
LPG Storage: The war also gives a message that an importing country like India should increase its storage to deal with such a crisis in future. The government should plan to build underground gas storage caverns. The European nations have already adopted this policy.
Alternative Gas Technology: India should increase its focus on alternatives to petroleum gas. The government should bring a long-term policy to encourage Scientists to develop synthetic gas, such as Dimethyl Ether (DME).
(With Agency Inputs)