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Indian businesses struggle with energy shortage as Middle East conflict disrupts sea route

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Indian businesses struggle with energy shortage as Middle East conflict disrupts sea route

2026-03-24 21:02 Last Updated At:21:37

As global tensions disrupt critical energy routes, the impact is now being felt far beyond the conflict zone, inside millions of kitchens across India.

Mohammad Rafi and his team have been running a local cafe in Shaheen Bagh, New Delhi, for more than a decade, serving hundreds of customers each day.

But in recent weeks, they have struggled to secure cooking gas as the tensions are escalating around the Strait of Hormuz, a critical route that carries roughly a fifth of the world's oil, amid the ongoing conflict involving the United States, Israel, and Iran.

Rafi said that before the crisis, he relied on four gas cylinders to operate different stoves. But he was down to just one recently.

Across the neighborhood, many businesses are facing similar challenges, with some even considering a return to firewood to keep their kitchens running.

"We are worried about what to do. We cannot even use firewood because it causes pollution. Our businesses are being affected. The country is facing a crisis because of the ongoing war," said Rafi.

India imports more than 70 percent of its crude oil, with a significant share of it passing through the Strait of Hormuz. Any disruption along this route raises concerns over supply and prices.

States including Karnataka, Maharashtra, Kerala and West Bengal are already reporting disruptions, particularly in the hotel and restaurant sector.

To manage the situation, the government has prioritized household liquid petroleum gas (LPG) supply, pushed gas-based power plants to the lowest priority, asked refineries to boost LPG output, and introduced a gap between cylinder bookings to manage demand.

"There is no LPG available. People are buying gas cylinders on the black market at three to five times the normal price," said Mohammad Irshad, a New Delhi resident.

Some LPG suppliers denied widespread shortage, attributing the situation to panic buying.

"There is no gas shortage here or elsewhere. The only issue is a surge in bookings due to panic. Many people who already have cylinders at home are placing additional orders, causing problems with the servers of gas companies." said Sanjay Birdhudi, a stock keeper at Bharat Petroleum.

Experts describe the situation as a "transit shock", warning that a prolonged disruption could significantly impact India's LPG supplies.

While Russian oil supplies and strategic reserves may offer a short-term cushion, a prolonged disruption could still push inflation higher.

"India is right to be cautious, but it needs to be also more assertive in its position to counter any re-calibration of efforts within its own outreach in the Gulf. I mean India stands to lose a lot more if the Gulf countries are adversely affected by the war which is not their doing. It is clearly part of the Israel-U.S. effort on attacking Iran and we should do everything possible to be cautious and conservative," said Deepanshu Mohan, a professor of economics at O.P. Jindal Global University.

Indian businesses struggle with energy shortage as Middle East conflict disrupts sea route

Indian businesses struggle with energy shortage as Middle East conflict disrupts sea route

South Africa's Gauteng province will deepen cooperation with China in technology, talent cultivation and trade, said Thulani Kunene, deputy chairperson of the Committees of the Gauteng Provincial Legislature, in Johannesburg.

As China shares its vision and future with Africa, its trade partnership with South Africa has also deepened, and a new framework signed last month will grant South African exports duty-free access to the Chinese market.

"We believe that our relationship can take us forward, in terms of mutually benefiting each other. We can benefit from advances in technology from China, and we think that we've got the resources, we've got the young population, young people who are prepared to learn, and we've got entrepreneurs who are willing. And we hope that some of them will take an opportunity to go to China, and also trade with the Chinese. We can sell more products from South Africa, from Gauteng to the Chinese, as much as we also buy products from China," said Kunene in an interview with China Global Television Network.

"The distance between China and Gauteng is not a problem. We've got very good port services, we've got a port in Johannesburg. We also have good freeways, good highways that go to the Sea Port of Durban and Richards Bay. So, we think that we're able to trade easily, as we were already doing," he said.

Starting May 1, China will implement a zero-tariff policy for all products from 53 African countries with diplomatic ties to China.

South Africa's Gauteng province to deepen cooperation with China: official

South Africa's Gauteng province to deepen cooperation with China: official

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