Full Breakdown
Disruption of Energy Supplies in South Asia Amid Middle East Conflict
3/13/2026, 2:29:11 AM
Arrival of the Shenlong Tanker
The Liberia-flagged tanker Shenlong has become the first vessel to successfully navigate the Strait of Hormuz and reach India since the escalation of conflict in the Middle East. The tanker, carrying 135,335 metric tonnes of crude oil from Saudi Arabia, docked at Mumbai Port on March 8, 2026. This arrival is significant as nearly 20% of the world's oil passes through this strategic waterway, which has seen a substantial reduction in maritime traffic due to heightened tensions following US-Israel attacks on Iran and subsequent Iranian retaliations. Indian officials have reported that 28 Indian-flagged vessels are currently operating in the Persian Gulf, with many facing risks due to the ongoing conflict.
Energy Supply Crisis in South Asia
The conflict has severely disrupted energy supply chains, leading to a potential liquefied petroleum gas (LPG) shortage across South Asia, particularly affecting India, Pakistan, and Bangladesh. The Indian Ministry of Petroleum and Natural Gas has acknowledged rising concerns, stating that disruptions in the Gulf are impacting LPG flows, which are crucial for households and businesses. Reports indicate that the price of LPG has increased, with commercial cylinders seeing a rise of approximately 115 rupees ($1.25). Many businesses, including restaurants and roadside stalls, are struggling to maintain operations due to limited gas supplies.
In response to the crisis, the Indian government has invoked provisions of the Essential Commodities Act to regulate production and supply, aiming to prevent hoarding and ensure that essential sectors receive adequate LPG supplies. The government has assured the public that it has sufficient stocks to meet demand in the short term.
Regional Impacts and Responses
The energy crisis is not limited to India. In Bangladesh, authorities have implemented emergency measures, including the temporary closure of universities and state-run fertilizer plants, to conserve energy. Similarly, Pakistan is facing heightened economic challenges, with Prime Minister Shehbaz Sharif announcing measures to reduce energy consumption, including a four-day workweek for government offices. The situation has led to increased fuel prices and calls for citizens to avoid stockpiling.
Official Statements & Responses
Indian Foreign Minister S. Jaishankar has engaged in discussions with Iranian officials regarding the safety of commercial shipping and energy security. He has emphasized the importance of avoiding actions that endanger civilian shipping. Meanwhile, the Indian government continues to monitor the situation closely, with assurances from officials that efforts are underway to stabilize LPG supplies.
Criticism & Opposition
Despite the government's assurances, there is growing concern among citizens and businesses about the potential long-term impacts of the energy crisis. Many individuals, including small business owners, have expressed anxiety over the rising costs and the uncertainty surrounding future supplies. The Bangalore Hotels Association has called for immediate government intervention to restore commercial gas supplies, highlighting the critical nature of the situation for the hospitality industry.
Conflicting Reports & Gaps
While the Indian government maintains that adequate supplies are available, reports from various regions indicate significant disruptions and shortages. The situation remains fluid, with ongoing developments in the Middle East likely to continue affecting energy supply chains across South Asia.
Verbatim Quotes
- “Precious lives, including of Indian citizens, have already been lost in multiple such attacks in the earlier phase of this conflict and the intensity and lethality of the attacks only seems to be increasing,” — Randhir Jaiswal, Indian Foreign Ministry Spokesman
- “This is going to hit all of us,” — Singh, Roadside Stall Owner
- “The entire situation is scary and uncertain.” — Sadhya, Cloud Kitchen Owner
The ongoing conflict in the Middle East is creating a ripple effect across South Asia, with energy supply disruptions posing significant challenges for millions of people reliant on LPG and petroleum products.
