Global Oil Pipelines Running Dry; 118K LPG Bookings Pending in Panjab

May

2026

As the deadlock between Iran and the US over the Strait of Hormuz continues, oil pipelines across the globe are running dry, depleting at an unprecedented rate, severely disrupting crude flows from the Persian Gulf, and rapidly eroding the buffer that protects markets from supply shocks. With the loss of more than a billion barrels of supply over roughly two months of near-closure of the Strait of Hormuz leaving the system increasingly exposed, the sharp fall in inventories has triggered rising concern across governments and energy markets. The most immediate stress is emerging in fuel-import-dependent Asian countries. Traders identify Indonesia, Vietnam, Pakistan, and Philippines as the most at risk, with potential shortages possible within a month. Larger economies such as China currently remain better supplied. Japan and India are now at 10-year seasonal lows, with stocks down 50% and 10%, respectively. In a television address, the Prime Minister of India, Narendra Modi has appealed to the people to follow austerity measures such as working from home, using public transport and carpooling in order to save fuel. He also appealed to people to buy less gold and limit foreign travel. Reacting to the appeal, opposition parties in India criticized Modi of ‘negligence’ after he called upon Indians to embrace COVID-era restraints while continuing with his own travel plans. Samajwadi Party chief Akhilesh Yadav questioned why Modi thought of all these measures after the conclusion of the assembly elections in four states when his Bharatiya Janata Party leaders were taking charter flights to campaign across the country. In Panjab, a severe Liquefied Petroleum Gas (LPG) supply crisis has hit gas consumers with a massive backlog of 118,825 refill bookings leaving thousands of households waiting between 10–30 days for cylinder deliveries across six LPG Sales Areas. The prolonged delays have triggered resentment among consumers and protests at local gas agencies while distributors say they are facing mounting pressure from angry customers. Meanwhile, the Sikh community in Tehran remains in the country despite the war with members highlighting the Gurdwara's role in serving people during the conflict (earlier coverage).