LPG shortages trigger inflationary spike in India as Middle East conflict persists in General Energy News 31/03/2026 The month-long conflict in the Persian Gulf is driving an acute energy crisis across India, with the closure of the Strait of Hormuz triggering a severe shortage of Liquefied Petroleum Gas (LPG). The disruption has moved rapidly from global shipping lanes to the local economy, forcing roadside vendors and small-scale eateries in New Delhi to abandon gas stoves for expensive kerosene, coal, or firewood alternatives. Only a handful of LPG vessels have reached Indian ports this month, covering just a few days of national demand, leading to a surge in the cost of basic food preparation, threatening the livelihoods of urban laborers. Industrial strain and household inflation The impact on India’s broader activity is becoming more pronounced as key industries grapple with fuel-related price hikes. In the capital, the price of a standard meal at roadside stalls has jumped 25% in a single month, while the cost of black-market LPG cylinders has reportedly quadrupled for some low-income families. Inflationary pressure is most visible in the hospitality and catering sectors. Top palm oil buyers like report a sharp decline in vegetable oil consumption as restaurants scrap fried snacks and families curtail wedding guest lists to manage soaring overheads. New Delhi’s government has responded by invoking emergency powers to compel refineries to prioritize domestic LPG production. Efforts to migrate consumers to Piped Natural Gas (PNG) are accelerating, with officials reporting a rate of 10,000 new connections per day. The measures taken currently cover approximately 60% of national demand, but the commercial sector remains largely sidelined as the state redirects limited supplies toward households. Over 3,000 raids have been conducted this month to combat hoarding and black-market activity. Market outlook and consumer resilience As the energy shock persists, the focus remains on the durability of Indian consumer spending. Official data has yet to capture the full scale of the disruption, but anecdotal evidence suggests a potential migration of urban workers back to rural areas as city living becomes unaffordable. The trajectory of this crisis will depend on the speed of local production ramps and the stability of alternative fuel channels. Until maritime routes in the Middle East stabilize, the elevated risk to India’s manufacturing and service sectors is likely to weigh on regional growth projections. Source: Investing.com 2026-03-31 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share