Updates on Key Sectors in View of Developments in West Asia
The Government coordinated a whole-of-government response to disruptions caused by the West Asia conflict, covering petroleum supply, LPG distribution, marit...
What Happened
- The Government coordinated a whole-of-government response to disruptions caused by the West Asia conflict, covering petroleum supply, LPG distribution, maritime escort operations, and evacuation of Indian nationals.
- The Ministry of Petroleum and Natural Gas ensured 100% supply continuity for domestic LPG, PNG, and CNG transport sectors; commercial LPG was restored to approximately 70% of pre-crisis levels with priority allocation to hospitals, agriculture, and pharmaceuticals.
- Excise duty on petrol and diesel was cut by ₹10 per litre to shield domestic consumers, while export levies on diesel and aviation turbine fuel were raised to retain domestic availability.
- The Indian Navy, operating under Operation Sankalp, escorted five Indian-flagged LPG carriers out of the Strait of Hormuz between 14–24 March 2026; as of May 2026, 18 Indian-flagged vessels with 485 seafarers remain in the western Persian Gulf under 24×7 monitoring, with 2,892 seafarers already safely repatriated.
- Nearly 5.98 lakh passengers have returned to India since February 28, 2026, including over 1,100 nationals evacuated from Iran via Armenia and Azerbaijan; Delivery Authentication Code (DAC) usage for LPG reached 93% to prevent diversion and hoarding.
Static Topic Bridges
India's Energy Security Architecture
India is the world's third-largest consumer of crude oil, importing approximately 87% of its requirements. Strategic Petroleum Reserves (SPRs) of 5.33 million metric tonnes — stored in underground caverns at Visakhapatnam, Mangaluru, and Padur — provide roughly 9.5 days of supply cover. Oil Marketing Companies (OMCs) hold an additional 64.5 days of combined crude and product storage. India is an Associate Member of the International Energy Agency (IEA) since 2017 but not a full member, as full membership requires OECD membership and a minimum 90-day import-equivalent reserve.
- SPR managed by Indian Strategic Petroleum Reserves Limited (ISPRL) under the Ministry of Petroleum and Natural Gas.
- Three underground cavern facilities: Visakhapatnam (Andhra Pradesh), Mangaluru and Padur (Karnataka).
- IEA full-member threshold: 90 days of net import stockpile.
- India imports crude from the Gulf (Iraq, Saudi Arabia, UAE) — West Asia supplies ~60% of India's crude imports.
Connection to this news: The West Asia conflict directly threatened India's most concentrated import corridor; the government's rapid excise adjustment and supply prioritisation demonstrates the practical operation of energy security policy under crisis conditions.
Operation Sankalp and Maritime Escort Doctrine
Operation Sankalp was first launched on 19 June 2019 to safeguard Indian-flagged vessels through the Strait of Hormuz during Iran-related tensions. Between 2019 and 2021, 20 warships escorted over 200 Indian-flag vessels carrying more than 21 million tonnes of cargo. The operation was re-initiated in December 2023 during the Red Sea crisis and further expanded in 2026. Indian Navy vessels are positioned east of the Strait of Hormuz, not entering the waterway itself, consistent with a non-escalatory posture.
- Strait of Hormuz: the world's most critical oil chokepoint, through which approximately 21% of global petroleum liquids transit daily.
- India's approach: protect national-flagged vessels and commercial interests without direct entry into conflict zones.
- UNCLOS framework: Article 58 (freedom of navigation in the EEZ) and Article 87 (freedom of navigation on the high seas) underpin India's right to escort operations in international waters.
Connection to this news: The 2026 crisis activated the full scope of Operation Sankalp, with naval escorts enabling Indian-flagged LPG tankers to exit the Strait safely — directly supporting domestic LPG supply continuity.
Consular and Evacuation Obligations under International Law
The Vienna Convention on Consular Relations (VCCR, 1963) obliges sending states to protect their nationals' interests abroad. India's Ministry of External Affairs activates emergency consular cells during crises, coordinates with host governments for evacuation corridors, and uses diplomatic channels to secure land/air routes. India's evacuation track record includes Operation Kaveri (Sudan, 2023), Operation Ganga (Ukraine, 2022), and Vande Bharat Mission (COVID, 2020–21).
- VCCR Article 5: consular functions include protecting nationals and their interests.
- In the 2026 crisis, Iran-based nationals were routed via Armenia and Azerbaijan — indicating use of third-country transit when direct air corridors were unavailable.
- MEA's Emergency Response Centre operates on a 24×7 basis during such events.
Connection to this news: The evacuation of 5.98 lakh passengers and the land-border routing through Armenia and Azerbaijan illustrate India's operational consular capacity and its strategic relationships with Caucasus nations.
Strait of Hormuz as a Global Energy Chokepoint
The Strait of Hormuz — a 33-kilometre-wide channel between Iran and Oman — is the world's single most important oil transit chokepoint. In 2024, approximately 21 million barrels per day (bpd) of petroleum liquids transited the strait, representing about 21% of global consumption. Any prolonged closure would force rerouting around the Cape of Good Hope, adding weeks of transit time and significantly raising freight and insurance costs.
- Average daily oil transit: ~21 million bpd (2024 baseline).
- Alternative route: Cape of Good Hope adds ~15 days of transit.
- LNG transit: approximately one-fifth of global LNG also passes through Hormuz.
- India's exposure: the majority of its Gulf crude imports transits this strait.
Connection to this news: The crisis directly reduced India's crude and LPG inflow, triggering the suite of domestic price interventions and naval escorts described in the PIB update.
Key Facts & Data
- 5.98 lakh Indian passengers returned home since February 28, 2026.
- 2,892 seafarers safely repatriated; 485 seafarers on 18 vessels still in western Persian Gulf as of May 2026.
- 5 Indian-flagged LPG carriers evacuated from the Strait of Hormuz between 14–24 March 2026 under Operation Sankalp.
- Excise duty on petrol and diesel cut by ₹10 per litre.
- Approximately 49.8 lakh domestic LPG cylinders delivered against 41.6 lakh bookings on April 30, 2026.
- DAC (Delivery Authentication Code) usage rose to 93% to prevent LPG diversion.
- Commercial LPG supply restored to ~70% of pre-crisis levels, with priority sectors receiving full allocation.
- India's SPR: 5.33 million metric tonnes (~9.5 days of supply cover).
- India imports ~87% of its crude oil requirements; Gulf region accounts for ~60% of these imports.
- Strait of Hormuz: ~21 million bpd oil transit, approximately 21% of global daily consumption.