The ongoing conflict in the Middle East involving Iran, Israel and the United States has created fears of a possible disruption in petroleum supplies in Kashmir. However, traders say there is no immediate shortage, though the commercial as well as domestic sectors could be affected if the situation continues.
The tensions have mainly triggered panic buying rather than an actual physical shortage of petroleum products in the Valley.
Jagmohan Singh Rana, a gas distributor, said, “We have stock for about four to five days. People are afraid and panicking. They are unnecessarily storing LPG and other items. The administration should make people aware.”
As fears of global supply disruptions spread through social media and news reports, motorists in Srinagar and other parts of the Valley rushed to fuel stations to fill their tanks, leading to long queues and congestion. Authorities, including the local administration and petroleum dealers, have confirmed that fuel stocks in the Valley are sufficient and have urged residents not to panic.
The government has activated monitoring systems and is prioritizing household LPG supply, while reassuring the public that steps are being taken to ensure availability and affordability even as global oil prices remain volatile.
In summary, the current situation is driven by fear of a future shortage rather than an immediate absence of petrol or diesel in the market.
While household supplies are being maintained, there is a verified shortage and rationing of commercial LPG across Kashmir as well as in other parts of India.
Gas dealer Adil Gowsani said, “There is no need to panic. We have no shortage of domestic LPG supply. However, there is some shortage in commercial gas supplies. People should avoid unnecessary stocking.”
The Ministry of Petroleum and Natural Gas has directed oil refineries to prioritize LPG production for domestic households and essential sectors such as hospitals.
The Kashmir business community has expressed serious concern over the shortages, warning that hotels and catering establishments may have to suspend operations if supplies are not restored before Eid.
Economists and local business leaders warn that if the Middle East conflict continues through March 2026, Kashmir’s economy could face a “triple shock”—rising energy costs, supply chain disruptions and a sharp decline in consumer spending.
Disruptions in the Strait of Hormuz have already increased freight costs and extended transit times by 15 to 20 days as ships reroute around the Cape of Good Hope. The Kashmir business community warns that prolonged geopolitical uncertainty could discourage new investments and potentially derail the region’s 5.82% GSDP growth trajectory.
