LPG Crisis
Govt denies levy of duty on Indian ships passing through State of Hormuz
This story was originally published at 18:08 IST on 24 March 2026
Register to read our real-time news.Informist, Tuesday, Mar. 24, 2026
Please click here to read all liners published on this story
--Govt: Sufficient stock of petrol, diesel in the country
--CONTEXT: Govt ministries briefing media on West Asia conflict
--Govt: No dry out reported at LPG distributors
--Govt: Two Indian flagged LPG cargoes crossed Strait of Hormuz Mon
--Govt: Minister Jaishankar spoke to US' Rubio on West Asia situation Mon
--Govt: Reports of levy at Strait of Hormuz for ship transit are baseless
NEW DELHI – Indian ships transiting through the conflict-hit Strait of Hormuz are not paying any additional levies nor are they seeking special permission to do so, senior government officials told reporters at a press conference Tuesday. "It is an international strait. As per international convention, it has right of freedom to navigate, they cannot impose any fee or levy as per norms," an official said, adding that reports suggesting this are baseless.
Currently, 20 Indian ships are stuck in the Persian Gulf west of the Strait of Hormuz. Late Monday, two India-flagged liquefied petroleum gas carriers Pine Gas and Jag Vasant crossed the crucial chokepoint safely. Traversing through this strait has become difficult for ships since the US-Israel aerial bombardment of Tehran began Feb. 28. India imports around 60% of its LPG needs mainly from West Asia. Most of it passes through this crucial passage.
India has five carriers loaded with LPG ready to come through and the government expects another to be added in the coming days. These five ships are carrying a total of 230,000 metric tonnes of LPG. External Affairs Minister S. Jaishankar last week told the Financial Times that he spoke to Iranian officials to ease India's shipping constraints, though they could not reach a blanket arrangement for all Indian ships to pass through the strait.
Amid social media posts of long queues at petrol pumps and worries of hoarding, the government officials said India has enough supply of energy. They said India, which relies on imports for 90% of its crude oil needs, is not short on supply of fuel such as petrol and diesel. "India has nearly 100,000 petrol pumps and nearly all are operating normally," another official said.
"All refineries are operating at high capacities with adequate crude inventories. Domestic LPG production has been stepped up in the refineries," an official said. While supply of LPG has been affected by the military conflict in West Asia, no dry-out has been reported at distribution outlets. The Petroleum and Natural Gas Regulatory Board Monday issued an order directing all city gas distributors to provide piped natural gas connections to residential schools, colleges, hostels, and communuity kitchens, among places wherever pipeline infrastructure is available.
The war in West Asia has also sparked concern about supply of fertilisers to India, as the country depends on imports for about 70% of its needs of finished fertilisers and raw materials. News agency Reuters Tuesday reported that Russia has stopped the export of ammonium nitrate, a high-nitrogen fertiliser, till Apr. 21 to ensure sufficient supply for its own use. Russia controls up to 40% of global trade in ammonium nitrate.
However, the government officials said India has sufficient stock of fertilisers. "At this point in time, we have adequate fertiliser stocks, especially for kharif 2026 season," one official said. "Going forward, Department of Fertilisers has put out global tenders and they have been received very well, all schedules are on time," the official said, adding that suppliers have assured uninterrupted supply.
The government is also actively working to clamp down on blackmarketing and hoarding by setting up control rooms. "On Monday, around 3,400 raids led to seizure of around 1,000 gas cylinders," the official said. Raids were conducted in Andhra Pradesh, Haryana, Madhya Pradesh, and Telangana. Oil marketing companies have also been active in helping to curb such illegal activities and multiple arrests have been made, the government said.
On the diplomatic front, the government said Jaishankar Monday spoke to US Secretary of State Marco Rubio and discussed how the West Asia crisis could hurt the global economy and the energy sector. He also met ambassadors of all the countries that are part of the Gulf Cooperation Council and exchanged views on the conflict. End
Reported by Anand JC
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
