Hormuz shock: Domestic LPG crisis mirrors global turmoil

THE conflict triggered by US-Israeli strikes on Iran and Tehran’s retaliation has disrupted shipping through the Strait of Hormuz, pushing global oil prices past the $100 mark and jolting energy markets worldwide. For India, the shock is already visible in an LPG shortage that has forced restaurants, small businesses and households into anxious improvisation. The immediate problem is structural dependence. India imports roughly 80% of the oil it consumes and a large share of these supplies flows through the narrow Hormuz passage. When that artery falters, the effects travel quickly from tankers at sea to kitchens at home. The government’s decision to prioritise domestic LPG supply while curbing commercial allocations has exposed the fragility of our energy security.

Ironically, relief has arrived from an unexpected direction. The US had earlier pressured New Delhi to reduce purchases of Russian crude. But it has now granted a one-month sanctions waiver, allowing all countries, including India, to buy Russian oil. The abrupt shift underscores the transactional nature of global energy politics. What was yesterday portrayed as unacceptable has today become vital.

The crisis also carries a diplomatic lesson. In the early days of the West Asia conflict, India appeared to tilt perceptibly towards Israel, reflecting both strategic ties and political signalling. As the economic consequences of the conflict ripple through energy markets, New Delhi has quietly returned to its traditional middle path — maintaining channels with all sides while prioritising national interest. That approach must now guide policy. Diversifying supply routes, expanding strategic petroleum reserves and accelerating renewable energy investment are no longer merely economic goals; they are strategic imperatives. When a distant strait can disrupt the daily meal of millions, energy independence becomes not just a policy objective but a national necessity.