JANROHLANDER

India’s LPG consumption plummeted by 13% in March due to West Asia conflict-induced supply disruptions. Despite government efforts to boost domestic production and meet household demand, commercial and bulk sales saw significant drops. However, overall LPG consumption for the fiscal year ending March 2026 still registered a 6% increase.

Several oil tankers have turned back in the Persian Gulf. This follows Iran’s mixed signals on keeping the Strait of Hormuz open. Shipowners are uncertain about transit. Five Greek and Indian tankers halted journeys early Saturday. Warnings were reportedly broadcast over radio. The situation creates confusion for global oil trade.

Amid trade tensions, US President Trump imposed tariffs on India for purchasing Russian energy, escalating U.S.-India trade disputes. India, now facing high tariffs, defends its oil imports as economically vital. Despite Western sanctions on Russia, India has significantly increased its Russian oil purchases, benefiting from discounted prices and fueling its refining industry.

India’s offshore drilling sector is facing a significant challenge. Oil and Natural Gas Corporation (ONGC) has cancelled multiple tenders for jack-up rigs. This has led rig operators to consider withdrawing their assets from India. Such actions could disrupt domestic oil production. The situation raises concerns about the future of offshore exploration in the country.

Amid escalating Middle East tensions, Prime Minister Modi urged citizens to conserve fuel by reducing petrol and diesel consumption, promoting work-from-home, public transport, and carpooling. He also advised against non-essential foreign travel and gold purchases for at least a year to bolster foreign exchange reserves and the domestic economy.

Fuel prices saw a hike of about 90 paise per litre. The BJP stated this increase is among the lowest globally. State-run oil firms absorbed significant losses for 76 days before passing on some costs. Global crude prices surged due to the West Asia conflict. India’s fuel price rise remains comparatively low against international benchmarks.

The conflict has disrupted crude supplies from some of India’s biggest suppliers, compelling refiners to process unfamiliar crude grades, said Ujjal K Mukherjee, chief technology officer at Lummus Technology, one of the world’s largest refining and petrochemical technology licensors.

Despite potential US tariff hikes and criticism, Russia anticipates India will maintain its current level of Russian oil imports. A Russian official highlighted the economic advantage for India, citing a 5% discount. India defends its right to purchase from the cheapest source, while strengthening ties with Russia and China.