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Fuel panic deepens India’s economic strain

Fuel panic deepens India’s economic strain

Long queues at a fuel station in India (Screengrab: X/@ashoswai)

ISLAMABAD: Panic buying spread across parts of India on Thursday as motorists and households crowded fuel stations and gas agencies, with local media reporting long queues, “no stock” signs and pumps running dry across the country. 


The Economic Times said rumors of shortages and possible price increases had triggered unusually heavy demand, overwhelming local supply chains. 


A post on X by Indian International Relations expert, Ashok Swain, captured that anxiety vividly, showing vast lines of people, hundreds of motorbikes and dozens of cars packed around a fuel station. 

Behind the scenes, the crisis runs deeper than isolated queues. 


The media reported this week that India is grappling with its worst gas shortage in decades after conflict-linked disruption around the Strait of Hormuz slowed or stranded ships carrying LPG, crude oil and liquefied natural gas. 

India imported about 60% of its LPG requirements last year, with roughly 90% of those imports coming from the Middle East, leaving the country highly exposed to the regional shock. Traders and data cited by Reuters said India’s LPG imports in March could fall by nearly half. 


The government has responded with emergency steps, including diverting LPG away from industry to protect household supply and ordering the strengthening of natural gas infrastructure. The media also reported that India has been loading LPG onto empty ships already stranded in the Gulf to bring supplies home faster. 


At the same time, India is facing additional stress after Iranian strikes damaged Qatari energy infrastructure, raising the risk of lower LNG supply from one of India’s key suppliers. 


The impact has extended beyond household consumers. The media reported that India has prioritized cooking gas supplies for homes, decreasing availability for commercial users, while reports said the government had partially restored commercial LPG allocations and offered states extra supply to ease pressure. 


Even so, local media on Thursday continued to report long lines, disrupted sales, and shortages at some outlets as authorities tried to contain the fallout.