Middle East Conflict Squeezes India’s Fuel Supply

Official data from the oil ministry reveals that gasoline sales fell 6.1% in May from April levels, a direct result of retailers raising pump prices four times last month to offset surging global crude costs. While diesel consumption saw a marginal 1.6% increase, the broader energy picture remains strained. LPG, a critical resource for 60% of Indian households, has been hit hardest, with consumption falling to 2.13 million tons as imported cargoes remain stranded in the conflict zone.

To mitigate the shortfall, the government has directed local refiners to ramp up production and shifted import strategies toward alternative markets, including record volumes from the United States. While the supply crunch triggers fears of accelerated inflation and fiscal instability, analysts maintain that the current dip is a reactive contraction rather than a long-term structural decline in demand.