In May 2026, Indian Prime Minister Modi made a two-hour lightning visit to the United Arab Emirates, during which he signed a liquefied petroleum gas supply agreement and a memorandum of understanding on strategic petroleum reserves. Just a few hours ago, India's state-owned refining company raised retail prices for gasoline and diesel for the first time in four years, with an increase of over 3%. The continued closure of the Strait of Hormuz is exacerbating India's economic difficulties, and this energy agreement aims to alleviate supply pressure.

Liquefied petroleum gas fills the shortage

India mainly uses liquefied petroleum gas as cooking fuel, and has been facing a shortage of liquefied petroleum gas since the supply interruption in the Strait of Hormuz caused by the Iran War. According to the newly signed agreement, India will receive liquefied petroleum gas from the United Arab Emirates to strengthen energy supply security and alleviate domestic fuel shortages.

Strategic Reserve for Crisis Response

Both parties simultaneously signed a memorandum of understanding on strategic petroleum reserves. Due to the continued closure of the Strait of Hormuz, India not only has to pay higher prices for liquefied petroleum gas imported from other regions, but also has to pay a premium for bypassing crude oil, putting pressure on its current account and foreign exchange reserves. The strategic reserve agreement will establish an energy security buffer for India. Keywords: international news and information, liquefied petroleum gas, strategic petroleum reserves

Modi calls on all citizens to save fuel

Prime Minister Modi urged Indian citizens this weekend to reduce gasoline and diesel consumption, use public transportation as much as possible, and carpool for travel. Petroleum Minister Puri stated that these measures will help the country save energy, reduce import spending, and overcome the challenges posed by severe military conflicts. Since the US imposed a blockade in mid April, some liquefied petroleum gas tankers have passed through the Strait of Hormuz.Editor/Gao Xue