Energy shock may hit kitchens and farms as West Asia crisis deepens
LPG supplies and fertiliser-linked inputs come under pressure as West Asia tensions begin to impact households and farms.
- Mar 28, 2026,
- Updated Mar 28, 2026 5:57 PM IST
As tensions escalate in West Asia, India’s energy challenge is beginning to extend beyond crude oil into areas that directly affect households and farms, including cooking gas supplies and food prices.
Pressure is already visible in LPG supplies and fertiliser-linked inputs, both of which feed directly into household expenses and farm costs. At a panel discussion titled Fuels of Growth held during Business Today MindRush & India’s Best CEOs Awards, industry leaders flagged early signs of stress across the energy chain, even as India has so far managed the immediate impact.
India imports nearly 85% of its crude oil requirements, with a large share routed through the Strait of Hormuz, according to data from the Petroleum Planning and Analysis Cell. The country’s crude oil imports are estimated at over 230 million tonnes annually, while LNG imports are in the range of 70-80 million tonnes, based on data from the Ministry of Petroleum and Natural Gas and industry reports.
“This is the biggest crisis the world has faced since the 1973 oil crisis. It is unprecedented,” said G Krishnakumar, Former CMD, BPCL. “Shipping insurance premiums have already gone up, so the cost has multiplied. We have mitigated it fairly well so far, but we need to do much more.”
India also imports around 60% of its LPG requirements, according to the Petroleum Planning and Analysis Cell. The stress is beginning to show in LPG supplies, a key fuel for households. “We are short by 25 to 30 LPG cargoes. Managing LPG becomes critical because it is used for cooking at home. If that is affected, it will have a societal impact,” Krishnakumar said.
India is the world’s second-largest importer of LPG, and any disruption in supply or rise in costs tends to feed directly into household consumption patterns. The impact could also spread into agriculture, with energy-linked inputs playing a critical role. India depends heavily on West Asia for fertiliser-linked inputs such as ammonia, tying energy prices directly to farm costs. According to the Department of Fertilizers, India imports a significant share of its fertiliser requirements, making domestic agriculture sensitive to global energy price movements.
“The biggest issue staring at India is agriculture and its exposure to oil shocks,” said Arnab Basu, Chief Industries Officer, PwC India. “Sixty per cent of our ammonia comes from Saudi Arabia and Oman. Input costs for farmers will go up, and we will see food inflation. That will have a direct impact on growth.”
Higher fertiliser and logistics costs are expected to feed into food prices if the disruption continues, adding pressure on inflation and rural demand. At the same time, the ability of oil marketing companies to absorb rising costs may be limited.
“At this moment, OMCs are resilient enough to absorb costs. But beyond a point, they will not be able to,” Krishnakumar said. “If you keep absorbing costs, you cannot invest in infrastructure. Somewhere, it will have to give.” The situation is pushing focus back on domestic alternatives such as biofuels.
“Green energy is now being discussed in the context of energy security, not just climate,” said Atul Mulay, President – Bioenergy, Praj Industries. Government data shows ethanol blending has reduced crude imports while supporting farm incomes. But industry executives said the country is far from fully utilising its bioenergy potential.
“We have underestimated this significantly,” said Ashish Kumar, MD, VERBIO India. “Agricultural residue alone has the potential to produce 50 to 60 million tonnes of natural gas equivalent, and we are not even at 1% of that.”
He added that the key challenge lies in building systems to aggregate and process dispersed feedstock. “We have the raw material across the country. What we need is infrastructure to convert it.” With no clear timeline for the conflict, companies and policymakers are being forced to plan for prolonged uncertainty.
“Capital deployment has not stopped, but there is caution,” said Arnab Basu, Chief Industries Officer, PwC India. “At the same time, certain investments cannot be delayed. This cannot be managed only through fiscal measures. The underlying issue has to be addressed.”
Industry participants, including Harsh Shah, Director, Shree Naman Group, said businesses will need to factor in sustained cost pressures and supply risks while planning operations and expansion.
As tensions escalate in West Asia, India’s energy challenge is beginning to extend beyond crude oil into areas that directly affect households and farms, including cooking gas supplies and food prices.
Pressure is already visible in LPG supplies and fertiliser-linked inputs, both of which feed directly into household expenses and farm costs. At a panel discussion titled Fuels of Growth held during Business Today MindRush & India’s Best CEOs Awards, industry leaders flagged early signs of stress across the energy chain, even as India has so far managed the immediate impact.
India imports nearly 85% of its crude oil requirements, with a large share routed through the Strait of Hormuz, according to data from the Petroleum Planning and Analysis Cell. The country’s crude oil imports are estimated at over 230 million tonnes annually, while LNG imports are in the range of 70-80 million tonnes, based on data from the Ministry of Petroleum and Natural Gas and industry reports.
“This is the biggest crisis the world has faced since the 1973 oil crisis. It is unprecedented,” said G Krishnakumar, Former CMD, BPCL. “Shipping insurance premiums have already gone up, so the cost has multiplied. We have mitigated it fairly well so far, but we need to do much more.”
India also imports around 60% of its LPG requirements, according to the Petroleum Planning and Analysis Cell. The stress is beginning to show in LPG supplies, a key fuel for households. “We are short by 25 to 30 LPG cargoes. Managing LPG becomes critical because it is used for cooking at home. If that is affected, it will have a societal impact,” Krishnakumar said.
India is the world’s second-largest importer of LPG, and any disruption in supply or rise in costs tends to feed directly into household consumption patterns. The impact could also spread into agriculture, with energy-linked inputs playing a critical role. India depends heavily on West Asia for fertiliser-linked inputs such as ammonia, tying energy prices directly to farm costs. According to the Department of Fertilizers, India imports a significant share of its fertiliser requirements, making domestic agriculture sensitive to global energy price movements.
“The biggest issue staring at India is agriculture and its exposure to oil shocks,” said Arnab Basu, Chief Industries Officer, PwC India. “Sixty per cent of our ammonia comes from Saudi Arabia and Oman. Input costs for farmers will go up, and we will see food inflation. That will have a direct impact on growth.”
Higher fertiliser and logistics costs are expected to feed into food prices if the disruption continues, adding pressure on inflation and rural demand. At the same time, the ability of oil marketing companies to absorb rising costs may be limited.
“At this moment, OMCs are resilient enough to absorb costs. But beyond a point, they will not be able to,” Krishnakumar said. “If you keep absorbing costs, you cannot invest in infrastructure. Somewhere, it will have to give.” The situation is pushing focus back on domestic alternatives such as biofuels.
“Green energy is now being discussed in the context of energy security, not just climate,” said Atul Mulay, President – Bioenergy, Praj Industries. Government data shows ethanol blending has reduced crude imports while supporting farm incomes. But industry executives said the country is far from fully utilising its bioenergy potential.
“We have underestimated this significantly,” said Ashish Kumar, MD, VERBIO India. “Agricultural residue alone has the potential to produce 50 to 60 million tonnes of natural gas equivalent, and we are not even at 1% of that.”
He added that the key challenge lies in building systems to aggregate and process dispersed feedstock. “We have the raw material across the country. What we need is infrastructure to convert it.” With no clear timeline for the conflict, companies and policymakers are being forced to plan for prolonged uncertainty.
“Capital deployment has not stopped, but there is caution,” said Arnab Basu, Chief Industries Officer, PwC India. “At the same time, certain investments cannot be delayed. This cannot be managed only through fiscal measures. The underlying issue has to be addressed.”
Industry participants, including Harsh Shah, Director, Shree Naman Group, said businesses will need to factor in sustained cost pressures and supply risks while planning operations and expansion.