War in West Asia Raises LPG and Shipping Concerns
India Balances Energy and Diplomacy in War Fallout
New Delhi: India confronted a widening set of economic, diplomatic and humanitarian implications over the past 24 hours as the expanding conflict across West Asia continued to affect shipping routes, energy supplies, aviation costs and the safety of Indian nationals in the region.
India’s Ministry of External Affairs confirmed that five Indian nationals have been killed and one remains missing amid the ongoing conflict. Indian diplomatic missions across West Asia have been coordinating with local authorities and families while monitoring the safety of Indian citizens in affected areas.
Maritime disruption has emerged as one of the most immediate operational concerns. Around 22 Indian vessels were reported stranded west of the Strait of Hormuz, the strategic maritime chokepoint through which a significant share of global oil and gas shipments pass. Diplomatic contacts were initiated to ensure safe passage for these ships, and Iranian authorities allowed some vessels, including LPG carriers bound for India, to transit the strait in recent days.
Energy security has become another central issue as the conflict threatens a corridor critical to India’s hydrocarbon imports. Government officials have indicated that about 70 per cent of India’s crude oil imports now arrive through routes outside the Strait of Hormuz, leaving roughly 30 per cent still dependent on the chokepoint following diversification of suppliers in recent years. The exposure remains higher for cooking gas supplies, with India importing about 60 per cent of its LPG consumption and a substantial share of those shipments sourced from West Asian producers.
The impact of the conflict has already begun to reach Indian households through cooking gas prices. Domestic LPG rates were increased nationwide earlier in March, with the price of a standard 14.2-kg household cylinder rising by ₹60. Commercial cylinders used by hotels and restaurants recorded a larger increase.
The price increase and uncertainty over shipping routes triggered a surge in bookings in some areas, prompting concerns about hoarding and panic buying. Authorities urged consumers not to stockpile cylinders and assured the public that distribution networks across the country continued to function normally.
To stabilise supply and prevent multiple bookings, the government extended the minimum interval between LPG refill bookings from 21 days to 25 days. States were also asked to monitor distribution channels closely and prevent black-marketing or diversion of cylinders. Officials said oil marketing companies were instructed to maximise domestic LPG production for household use while reviewing supply allocations to commercial consumers.
Despite the surge in demand, the government said there had been no nationwide shortage across the country’s LPG distribution network, which includes tens of thousands of distributors serving households and commercial establishments.
The conflict’s ripple effects have also reached India’s aviation sector. Airlines including Air India, IndiGo and Akasa Air introduced fuel surcharges on domestic and international routes as aviation turbine fuel costs rose in response to higher global oil prices linked to the conflict.
Diplomatically, India has maintained engagement with multiple parties involved in the crisis, including Iran, Israel, the United States and several Gulf governments, while focusing on protecting shipping routes, energy supplies and Indian nationals in the region.
The situation reflects the complex strategic landscape India faces in West Asia. Iran remains an important energy partner and a country with longstanding historical and commercial ties to India, while Israel is a key defence technology partner and the United States a major strategic partner in security and economic cooperation.
Another factor shaping India’s response is the large Indian diaspora across Gulf countries. Nearly nine million Indians live and work across the region, particularly in the United Arab Emirates, Saudi Arabia, Qatar and Kuwait. Remittances from these workers represent a significant economic lifeline for many households in India, and prolonged instability could affect employment and financial flows.
The conflict itself has widened rapidly since Israeli and U.S. strikes targeted sites inside Iran on February 28, followed by Iranian missile and drone attacks and retaliatory Israeli operations. Military exchanges have continued across several fronts in recent days, including missile and drone activity in Gulf states, attacks targeting U.S. installations in Iraq and sustained fighting along the Israel–Lebanon frontier involving Hezbollah.
Humanitarian conditions have also deteriorated in parts of the region. United Nations agencies have reported large-scale displacement and disruptions to essential services in Lebanon and neighbouring areas as airstrikes, rocket fire and ground incursions continue.
For India, the evolving crisis combines strategic, economic and humanitarian dimensions. Government agencies are continuing to monitor developments affecting shipping lanes, energy supplies, Indian nationals and diaspora communities across West Asia as the conflict enters its third week.
– global bihari bureau
