How India avoided a fuel crisis as the West Asia conflict disrupted supply chains

India avoided a fuel crisis after disruptions linked to the West Asia conflict, including the closure of the Strait of Hormuz, by keeping petrol, diesel, and LPG supplies available for about four months. Following US and Israel strikes on Iran on February 28, Tehran closed the Strait, through which close to a fifth of the world’s oil moves. India imports about 90% of its crude and roughly 60% of its LPG, with up to 50% of oil and 90% of LPG supplies routed via the Strait. Prices rose sharply as the disruption dragged on, with India’s crude basket moving from about $70 per barrel to over $120 within four weeks. The Saudi Contract Price for LPG increased about 46% between February and June, pushing the cost of a 14.2 kg cylinder above Rs 1,600. Authorities issued control orders quickly, diversified supply, and invested in infrastructure, including expanding LPG terminals from 11 in 2014 to 22.