Indian Economic segments heavily or even remotely dependent on Energy, are reportedly in the thraws of a killing embrace. Deeply felt but forbidden to be expressed. It’s true that a world superpower with its labyrinthine, incredible, bizarre, fanciful resolutions full of wayward dribbling’s, has put the entire universe on a roller coaster ride to imminent apocalypse. The War with Iran does not appear to have an expiry date. It has, what psychologists would term acquired functional autonomy. With no exit plan in sight, Iran has succeeded in converting the war into one of attrition. The war has plunged many Gulf Nations into the cauldron. Iran has used low cost armaments and hit strategic oil sites which are bleeding both US, its allies and Israel. Hitherto inconceivable attacks have been carried out on neighboring Arab nations – Bahrain, Kuwait, Saudia, Dubai, Qatar in the holy month of Ramzan. Tel Aviv with its famed Iron Dome has also not been spared. Attacks on places as distant as Diego Garcia in Asia have stunned all. Weaponising Energy as never before, Iran has hit the bulls eye. Gulf of Hormuz which carries almost 20% of World’s Oil and Liquified Gas supplies has become a choke point impenetrable for nations like India, South Korea, Japan, Australia and to some extent even China. Iran, thus has not only stood its ground on the battlefield but has created a storm in the energy and world economics. The mighty US, has been forced to blink. The announcement of 5 Day Pause and talks in the unlikely mediator country of Pakistan which is now replaced by Turkiye is seen by many as a desperate way out of the stalemate. Iran is reportedly lukewarm and has claimed that US is only negotiating with itself. There are also movement of ground troops by US which the possibility of boots on the ground within realm of reality. Iran has wowed to meet it head on.
India is also severely hit. Oil & Gas based energy domains have always been volatile putting severe stress on the Indian Economy. Brent is today at 94.91 Dollars per Barrel having climbed down from 111.04 Dollars a few days back. The Indian Crude Oil Basket as on 24.03.2026 is 147.24 Dollars per Barrel.
The current price of LNG is approximately $19.25/MMBtu (JKM) and €55/MWh (TTF). Additionally, the spot price for natural gas futures is around $2.931. The Gas prices also seem to have been impacted by the mystery explosion at Texas refinery. All this has put pressure on pricing of domestic Oil & Gas products. Though normal Petrol & Diesel prices are current stable but branded products have seen a rise in prices. The Domestic LPG rates for 14.2 KG Cylinder was increased by Rs 60/- while the 19 KG Commercial LPG increased by Rs 115/- but this was done on March 7,2026 much before the impact of the war. The Government of India moved with alacrity and took the necessary steps for mitigating the circumstances. It acted swiftly to manage the situation, stepping up coordination with public sector oil companies, reviewing fuel inventories, and exploring alternative supply routes and sources. Surprisingly it’s not the rates which have troubled the Indian consumer but the lack of ready availability.
Small establishments, restaurants even the migrant workers all seem to be having some trouble. Many workers have left towns for their homes in villages. Suddenly the Covid days seem to have come back. The fear of non-availability of Crude and Gas is looming large. India’s strategic oil reserves, designed to provide cover for about 9.5 days of supplies during disruptions or price shocks, are currently sitting at only two-thirds capacity, the Rajya Sabha was informed on Monday. According to Minister of State for Petroleum and Natural Gas Suresh Gopi, Indian Strategic Petroleum Reserve Ltd (ISPRL) has around 3.372 million tonnes of crude stock available. The stockpile has been in focus since the breakout of war in the Middle East and the subsequent disruption in transport along the Strait of Hormuz snapped the supply of crude oil, natural gas, and LPG from the Gulf countries. Meanwhile LPG production has reached around 60% as per some reports.
These are surely times for cutting costs in the Corporate Sector as well. The Private Sector will surely take a call. It’s the PSUs and their controlling Ministries which experts say should take a lead as their savings directly impact the exchequer. Air Line Tickets are going high, why can’t the PSU Senior Managements reduce travel to a minimum and rely more on Online meetings & interactions? What about travel by Economy Class than Business & First Class? Car Pools are a tested source of saving expenditure. Another phenomenon which usually is done by the month of March, in PSUs especially, is the Annual Lateral & Vertical movements of Officers and Staff across the length and breadth of the nation. Score of employees are moved across the nation in an exercise which involves movement of Families, Household Goods, Acquiring New Residences involving considerable costs. This practice should be stalled forthwith this year, a moratorium to tide over the emergency situation. There are environmental issues also which are involved. Concerned Ministries should look into this with a strict view to save precious budgetary funds of PSUs.
NewsIP, has always strived to bring to its readers’ insights and analysis of situations impacting India citizens. One interesting aspect of the immediate course of the Oil & Gas sector, which experts opine, has been missed by many is the burdening of the PSUs with LPG product maximization. The Government had during the first phase of war itself instructed PSUs to increase LPG Production. What about the Private players? Observers know that LPG is a comparatively loss making business. And Domestic markets are by and large catered by the PSUs. Therefore, Private Oil & Gas Players would give it a go by. Simultaneously, experts point out that the US sanctions are being removed from sourcing Oil from Russia and even Iran.
These allowances would benefit the Private Players immensely since they are more into export earnings. Another round of Windfall Profits is on its way for them. US has even specifically asked for greater refining in India to ease availability of products in Europe. One private set up is even said to be in talks to set up a Refinery in USA. While PSUs will have to ensure domestic availability of products including LPG, the private players will laugh all the way to the Bank. Well, War does indeed make strange bedfellows. In any case, there is a possibility for difficult days ahead for India.
War is mainly a Catalogues of Blunders. And as Sophocles said , War never takes a wicked man by chance, the good man always. May this time be an exception!
