The direct impact of the fire of war burning in one part of the world has now reached the kitchens of our homes and yours. Amidst the ongoing fierce conflict in the Middle East (Gulf countries), the supply of crude oil in the international market has been badly affected. Amidst this hubbub, America announced a temporary ‘concession’ for India to buy Russian oil stranded in the sea. But New Delhi has told the world in a very strong and clear tone that India has never needed the permission of Washington or any other country to meet its energy needs.
India responded to America’s talk of ‘discount’
Recently Washington relaxed the economic sanctions imposed on Russia. Earlier in February, the US had removed 25 percent duty on Indian exports under an interim trade agreement on the assumption that New Delhi had “committed” to stop buying Russian oil. But the Press Information Bureau (PIB) of India has issued a note and made the situation completely clear.
According to PIB, during the three years of the Russia-Ukraine war, India continued its trade uninterrupted despite American and European objections. Even in February 2026, Russia remains India’s largest crude oil supplier. The government argues that the US’s claim of “enabling” this trade by giving temporary exemptions is beyond the ground reality. Since 2022, this import has increased continuously due to concessional prices and huge demand from domestic refineries. India is a major exporter of refined petroleum products, and this situation strengthens, rather than weakens, the country’s energy security.
Gulf war is affecting our pockets
The campaign launched by the US and Israel against Iran and the retaliatory attacks by Tehran have badly shaken the global energy and transportation sectors. This war has now entered its seventh day.
Due to this the ‘Strait of Hormuz’ has been almost completely closed. This sea route is an important ‘chokepoint’ for the world, through which 20 percent of global oil and liquefied natural gas (LNG) passes. As a direct result of the stoppage of oil supply from the Middle East, the prices of domestic LPG (LPG) cylinders in India were increased by seven percent on Saturday.
The era of cheap Russian oil is over, now you will have to pay ‘premium’
Due to the sudden cut in the supply of crude oil from the Middle East to Indian refineries, there has been an unexpected surge in the demand for Russian oil. Russian oil, which was available at a huge discount of 10 to 13 dollars till February 28 (before the US-Israel attack), has now completely changed its equations. Indian refineries now have to pay a ‘premium’ (additional price) of 4 to 5 dollars compared to Brent crude for delivery in March or early April.
On Friday, a jump of 8.5 percent was recorded in global crude oil prices and it has increased by almost 30 percent in the entire week. US President Donald Trump’s statement has made the situation even more serious that this war will stop only with ‘Iran’s unconditional surrender’.
Considering the seriousness of the situation and domestic needs, the Petroleum Ministry of India this week has directed the refineries to immediately increase the production of LPG. For this, the flow of propane and butane has been asked to be used in LPG production, so that the general public does not have to face shortage of cooking gas.