West Asia

Oil marketing companies raised the price of the commercial LPG cylinder by ₹10 and aviation turbine fuel by ₹6.28 a litre from 1 September, reversing two months of cuts. Domestic LPG consumption fell about 16% in August, with new connections still on hold because of the West Asia conflict.

The United States struck Iranian rocket launchers on Larak island in the Strait of Hormuz on 31 August, saying the aim was to stop Tehran mining the shipping lane. Iran retaliated with missile and drone attacks on U.S. bases in Jordan and the UAE, and later on 3 September attacked American bases again despite warnings from President Trump.

The Petroleum Ministry has paused the release of new LPG connections, calling it a temporary measure forced by the geopolitical situation. Distributors are pushing 5-kg free-trade cylinders and 10-kg composite cylinders as alternatives. Six months into the war, the Strait of Hormuz remains practically closed: average flows are about 0.25 million barrels a day against 15 million before the conflict.

The Reserve Bank of India’s monthly bulletin named the West Asia conflict as a continuing challenge to the economy. It nonetheless described domestic demand as buoyant, pointing to indicators such as vehicle sales and petroleum product consumption remaining in positive territory.