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Iran war energy shock pushes India to expand ethanol plans and rethink fuel compatibility for millions
Economy
Published on 15 May 2026
Black market LPG prices trip as deliveries stall
As the Iran war disrupts shipping through the Strait of Hormuz, India and parts of Southeast Asia are accelerating biofuel adoption to curb expensive imported oil and LPG. In New Delhi, consumers report LPG delays and black market prices soaring threefold. In Chennai, drivers complain that ethanol-blended gasoline is worsening car mileage as ethanol becomes the default blend at pumps. India is weighing higher ethanol blends up to 85% or even 100%, while experts warn supply-chain delays and food-versus-fuel environmental impacts.
- LPG delivery delays linked to Iran war disruptions drove prices sharply higher
- A New Delhi resident says LPG that cost ₹1,000 now reaches ₹3,000
- Ethanol is already blended into gasoline, and some drivers report reduced mileage
- India proposes letting vehicles run on 85% ethanol or even 100%
- Sugar export bans help secure feedstock for scaling ethanol blending
- Experts warn crop-based ethanol could strain food needs and expand deforestation
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times