Commercial LPG prices surge Rs 993 as West Asia conflict disrupts global energy

Iran's effective blockade of Strait of Hormuz demonstrates regional coercive power over global energy flows. India's vulnerability exposed as 88% crude oil and 50% natural gas imports transit through chokepoint. India's subsidy absorption strategy reflects geopolitical hedging—maintaining domestic stability while exposed to external supply shocks. Shift toward energy security concerns and potential diversification away from West Asia dependency.

Similar to 1973 OPEC oil embargo and 1979 Iranian Revolution energy crises, demonstrating how regional conflicts weaponize energy supplies. Current situation mirrors Strait of Hormuz vulnerabilities that have repeatedly destabilized global markets.

Domestic consumers protected from retail petrol/diesel increases, but commercial businesses (restaurants, hotels, small industries) face 32% LPG cost surge, likely leading to higher prices for food, hospitality services. Airlines shielded from immediate cost pass-through but long-term sustainability uncertain.

Government absorbing energy cost shocks through price controls and windfall tax reductions to prevent inflation and protect vulnerable sectors. Strategy prioritizes consumer protection over fiscal revenue, risking subsidy burden. May require sustained monitoring of global energy prices and potential future policy adjustments if conflict persists.