Refined Fuel Shortage Worsens: Infrastructure Damage Hits Refineries Globally

• Global energy markets face a more severe crisis in refined petroleum products than crude oil due to West Asia tensions.
• Refinery outages, infrastructure damage, and logistical constraints are causing prolonged shortages of refined products.
• An estimated supply gap of 10 million barrels per day is expected by April 1, 2026, with refined products more severely impacted.
• India is vulnerable due to its dependence on Middle Eastern LPG supplies, with 50-60% of imports transiting the Strait of Hormuz.
• Disruption in the Strait of Hormuz is aggravating the situation, leading to a severe and politically sensitive LPG supply crunch in India.