India is weighing a series of contingency measures — including restricting petrol and diesel exports, ramping up crude purchases from Russia and introducing demand-management steps such as LPG rationing — to address potential fuel shortages if traffic through the Strait of Hormuz remains disrupted for weeks, people familiar with discussions told the Economic Times (ET).
According to ET, the deliberations involve senior government officials and industry executives reviewing both supply- and demand-side options amid escalating tensions in West Asia.
Oil, Gas Prices Surge
Oil and gas markets reacted sharply on Monday. Brent crude futures rose nearly 10% to around $80 per barrel, while European natural gas prices jumped more than 40%. The spike followed widening conflict in West Asia and attacks on key energy facilities, including Saudi Arabia’s Ras Tanura refinery and a Qatari LNG plant, which triggered production shutdowns.
Tanker movement through the Strait of Hormuz remained sparse for a second straight day, heightening concerns over supply continuity and prompting officials and refiners to assess fallback options, ET reported.
LPG Seen as Most Vulnerable
While some industry observers believe Iran may struggle to sustain prolonged military escalation and that transit disruptions through Hormuz could normalise quickly, uncertainty remains. US President Donald Trump has indicated the conflict could stretch up to four weeks.
After a review meeting, oil minister Hardeep Puri said on X that the government is “continuously monitoring the evolving situation" and would take all necessary steps to ensure availability and affordability of key petroleum products.
One immediate step under consideration is curbing exports of petrol and diesel to prioritise domestic supply in an emergency, people cited by ET said.