Unlike crude, India does not maintain strategic LPG (cooking gas) reserves of comparable scale, making LPG flows more logistically sensitive in a disruption scenario, Sumit Ritolia, lead analyst with Kpler, said in a note. Moreover, it may not be easy to diversify to other sources to procure LPG as it would be for crude oil. The impact on the LPG subsidy bill would depend on the extent of any surge in LPG prices as well as freight costs. Also Read Iran strikes disrupt basmati trade, Haryana exporters brace for lossesEffect on macrosEvery $1 a barrel increase in crude oil prices inflates India’s oil import bill by $1.3-1.4 billion. “A surge in global oil prices could widen the current account deficit and fuel inflation.” Ajay Srivastava, founder of think tank GTRI, said in a note.

Source: The Telegraph March 02, 2026 01:12 UTC