Stocks open higher after massive sell-off

Indian businesses and households continue to face a shortage of LPG, with many fearing the crisis will only get worse as tensions escalate in the Middle East.

On Thursday evening, foreign ministry spokesperson Randhir Jaiswal told reporters that India is trying to import LPG from all available sources, including from Russia. His statement came in response to increased attacks on energy infrastructure in the Middle East.

On Thursday morning, Iranian missiles hit and damaged Qatar’s Ras Laffan gas field, which is a key exporter of LPG to the world. India, the world’s second-largest LPG importer, relies heavily on Qatar and Middle Eastern nations for its energy needs.

Since the US-Israel war with Iran began, the Indian government has taken several steps to ensure a stable energy supply at home. Even so, consumers are complaining about the lack of LPG cylinders in the market.

Several eateries and food-related businesses across India have temporarily shut down. A local eatery in Delhi said it was impossible for small business owners to survive in these conditions. “The official platforms are not giving LPG and the black market is selling it three times the official price. How can I turn a profit on that?” he told DW.

Even households are now careful to preserve the gas they have. “We’re only cooking basic food which requires minimum gas time,” a domestic worker told DW, adding that her family feared their LPG cylinder could run out anytime.

Meanwhile, here are some of the steps the government has taken:

• The government has classified energy data as a national security matter.
• It has mandated all entities across the oil and gas value chain to furnish detailed operational information.
• The petroleum ministry is allowing commercial use of alternative fuels like kerosene, coal and biomass to ease pressure on LPG supply channels.
• The government is releasing additional amounts of alternative fuel to states amid the LPG shortage.
• India has increased domestic LPG production by at least 25%, according to the finance minister.
• The government has urged households to shift from LPG to piped natural gas (PNG), which Indian refiners say is in abundant supply.

India’s two key indices rose on Friday morning after investors saw a massive sell-off on Wednesday that wiped nearly Rs 12 lakh crore ($1.2 billion, €1.1 billion) in investor wealth.

The BSE Sensex, an index of 30 of India’s largest and most actively traded companies, rose 1.35% as of 11 a.m. local time. The NSE Nifty 50 Index was up 1.37% at the same time.

On Wednesday, both indices fell more than 3.3%, reaching their lowest point in nearly a year.

The sell-off was largely driven by a sharp rise in Brent crude oil prices, which climbed well above $118 at one point, close to their highest level since 2022.

Energy prices surged after Iran threatened “zero restraint” if Israel continued attacking Iranian infrastructure. Several of Qatar’s liquified natural gas (LNG) facilities at Ras Laffan came under renewed attack in the early hours of Thursday. Energy experts say the damage will have a severe impact on global LPG supply.

Iranian state media had earlier named the Ras Laffan facility as a potential target after Israel struck the South Pars gas field in the Persian Gulf — the world’s largest natural gas reserve, owned jointly by Iran and Qatar, which supplies 70% of Iran’s gas.

India imports 65% of its LPG needs, 90% of which transit through the Gulf of Hormuz. About one-third of India’s LPG supply comes from Qatar.

On Friday, Israel said it would continue striking Iranian infrastructure but would refrain from targeting South Pars, offering investors a glimmer of hope. 

Good morning! And welcome to DW’s India blog.

This is Mahima Kapoor from the New Delhi studio, and I will be bringing you a roundup of the biggest headlines from India this Friday.

Indians are waking up to more pain and uncertainty as the escalated attacks on energy infrastructure in the Middle East threaten to worsen the shortage of liquefied petroleum gas (LPG) at home.

Indian households and businesses widely use LPG as cooking gas.

India’s stock market opened on a positive note on Friday after a massive tumble on Thursday that wiped billions of investor wealth from the market. The sell-off was largely driven by rising crude prices due to the ongoing US-Israel war with Iran, which has impacted most of the Middle East.

The Indian government has assured citizens that it is attempting to buy LPG from every available source to fulfill needs at home. It is also encouraging the use of alternative fuels like piped natural gas to take some of the pressure off.

Stick with us as we break down the day’s news for you.