War Panic Fuels Surge in Petrol, Diesel Demand in India
Strait of Hormuz reopening eases fears, but March saw sharp spike in fuel consumption
- Petrol, diesel demand spikes amid Middle East tensions
- Iran assures Strait of Hormuz will remain open
- Panic buying leads to long queues at fuel stations
- LPG demand dips despite anxiety, prices blamed
GG News Bureau
New Delhi, 18th April: India witnessed a sharp surge in petrol and diesel demand in March as the Middle East conflict triggered widespread anxiety over fuel supplies, even as Iran has now announced that the Strait of Hormuz will remain open during the ongoing ceasefire.
The assurance comes as a relief for India, which depends heavily on crude imports passing through the crucial shipping route.
Spike in Fuel Demand
Data from the Petroleum Planning and Analysis Cell (PPAC) shows diesel consumption jumped to 8.72 million tonnes in March, up from 7.66 million tonnes in February. Petrol demand also surged to 3.77 million tonnes — the highest in recent months.
The spike coincided with heightened tensions involving Iran, indicating precautionary buying rather than normal consumption growth.
Panic Buying Across Cities
During the peak of the crisis, long queues were reported outside petrol pumps in several cities, with motorists stocking up fuel amid fears of shortages and price hikes.
Fuel station operators reported unusually high footfall, as consumers rushed to secure supplies.
LPG Demand Shows Divergence
In contrast, LPG consumption fell to 2.38 million tonnes in March despite visible anxiety among consumers.
Experts attribute this to rising commercial LPG prices, which may have led restaurants and small businesses to cut usage, while households exercised caution amid higher costs.
Digital Trends Reflect Anxiety
Online search patterns mirrored the panic. Searches related to petrol surged sharply in late March, while LPG-related searches peaked earlier but declined quickly.
Interestingly, searches for induction cooktops also increased, suggesting households were exploring alternatives to cooking gas.
Regional Impact
The anxiety was most pronounced in northern and eastern states such as Uttar Pradesh, Bihar and Delhi, where search activity related to LPG was highest. Southern states showed relatively lower concern.
Ceasefire Brings Relief
With Iran confirming that the Strait of Hormuz will remain open, immediate fears of supply disruption have eased. However, the March data highlights how global geopolitical tensions can quickly translate into consumer behaviour and energy demand in India.
