What is the common examiner trap about Economy in UPSC exams?

Examiners may confuse Strait of Hormuz (Persian Gulf) with Strait of Malacca (Indian Ocean) or swap LPG import percentage (60%) with overall energy import dependency. They might also test the refill gap extension as 21 to 25 days, not 20 to 30.

What should UPSC aspirants remember about Economy for Prelims?

1. Target this Data: India imports ~60% of LPG; ~90% via Strait of Hormuz; cylinder price hike of ₹60. 2. Target this Nodal Body: Central Government (through Ministry of Petroleum and Natural Gas) invoked Essential Commodities Act. 3. Target this Legal Point: Essential Commodities Act, 1955 – Section 3 allows price control and distribution regulation.

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News 9 of 22

Strait of Hormuz Closure: 60% LPG Imports Disrupted, Govt Invokes Essential Commodities Act, Migrant Food Security at Risk

Q: Which Act was invoked by the Government of India to regulate LPG distribution during the Strait of Hormuz crisis?

Essential Commodities Act, 1955, The article states that the government invoked the Essential Commodities Act to stretch the gap between domestic refills and prevent hoarding. This Act empowers central regulation of essential commodities during supply crises.

Q: Consider the following statements regarding the impact of the Strait of Hormuz closure: 1. India imports approximately 60% of its LPG requirements, and about 90% of those imports come through the Strait of Hormuz. 2. The government reduced the gap between domestic LPG refills from 25 days to 21 days to increase supply. 3. The CMIE household panel data from the Covid-19 reverse migration showed that diets improved when workers returned to villages. Which of the statements given above is/are correct?

Only 1, Statement 1 is correct as per the article (60% imports, 90% via Hormuz). Statement 2 is incorrect: the government extended the gap from 21 to 25 days, not reduced it. Statement 3 is false: CMIE data showed diets cratered, not improved.

Q: According to the article, what was the increase in the price of an LPG cylinder within days of the crisis?

₹60, The article explicitly states that the government raised the price of a cylinder by ₹60 within days. Options ₹40, ₹50, and ₹70 are close distractors not mentioned in the text.

Q: What is the primary social vulnerability highlighted by the Strait of Hormuz crisis according to the article?

Lack of urban safety nets for migrant workers without land, The article contrasts the 'rooted' (those with village land) who can survive by retreating to farms, against the 'rootless' (second-generation migrants without land) who have no fallback. The crisis exposes the thin floor under urban migrants who rely solely on the market.

Economy Intl. Relations Social IssuesHIGH

Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link

24 Jul 2026

~2 min

Source: Indian Express

Key Data:60% LPG import dependency90% via Strait of Hormuz21 to 25 days refill extension₹60 price hikeBengaluru: 1 in 10 hotels got gasMumbai: 2–8 day delays

Bodies:Government of IndiaCMIE

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~2 min · Quick mode

What This Article Covers

1.India imports 60% of its LPG, with ~90% routed through the Strait of Hormuz; the strait's closure due to war has triggered a supply crisis.

2.Government response: Essential Commodities Act invoked, domestic refill gap extended from 21 to 25 days, and cylinder price hiked by ₹60 within days.

3.Migrant workers without land (rootless) are worst hit, as CMIE data from the Covid-19 reverse migration showed diets cratered and food spending never recovered in poorest districts.

The Big Picture

Prelims · HighMains · High

The closure of the Strait of Hormuz due to the US-Israel-Iran war has disrupted 90% of India's LPG imports (60% of total consumption), forcing the government to invoke the Essential Commodities Act, raise prices by ₹60, and extend refill cycles. This crisis starkly exposes the vulnerability of urban migrant workers who lack land-based safety nets, echoing the food security collapse seen during the Covid-19 reverse migration.

Exam Lens

Quick Exam Facts From News

India's LPG Import Dependency~60%

LPG Imports via Strait of Hormuz~90%

Bengaluru Hotels Receiving Gas (March 10)1 in 10

Mumbai Commercial Refill Delays2–8 days

Domestic Refill Gap Extension21 to 25 days

LPG Cylinder Price Hike₹60

1-Minute Revision

›India's LPG Import Dependency: ~60%
›LPG Imports via Strait of Hormuz: ~90%
›Target this Data: India imports ~60% of LPG; ~90% via Strait of Hormuz; cylinder price hike of ₹60.
›Target this Nodal Body: Central Government (through Ministry of Petroleum and Natural Gas) invoked Essential Commodities Act.
›Target this Legal Point: Essential Commodities Act, 1955 – Section 3 allows price control and distribution regulation.

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News Snapshot

🛢️

LPG Supply Disruption

90% of India’s LPG imports pass through the Strait of Hormuz; its closure has caused severe shortages in cities like Bengaluru and Mumbai.

📄

Government Emergency Measures

Essential Commodities Act invoked, refill intervals extended, and cylinder prices raised to curb hoarding and manage demand.

🧑‍🌾

Migrant Worker Vulnerability

Urban migrants without land (rootless) face food insecurity as they cannot stockpile or retreat to rural farms, repeating Covid-era diet collapse.

Detailed Analysis & Strategic Depth

Context / Background

India imports about 60% of its LPG, crucial for domestic cooking and commercial kitchens. Nearly 90% of these imports transit the Strait of Hormuz, a geopolitical chokepoint. The US-Israel war with Iran led to the strait's closure, triggering an immediate supply shock. The government invoked the Essential Commodities Act to regulate distribution and prevent hoarding, while raising prices and stretching refill cycles.

Core Analysis & Implications

The crisis reveals a class fault line: affluent households can stockpile processed food and afford price hikes, while migrant workers, dependent on daily wages and urban rental rooms, have no buffers. Drawing on CMIE household panel data from the Covid-19 reverse migration, the article shows that when workers returned to villages, diets collapsed – eggs, meat, fruit, and vegetables fell sharply. Those with land survived; the rootless second-generation migrants, who lost village land, are trapped between urban markets and no rural fallback.

Future Outlook / Way Forward

The Strait of Hormuz will eventually reopen and LPG supplies will resume, but the structural vulnerability of migrant workers remains. The article warns that while ration shops provide basic calories, they do not ensure nutritional well-being. Policymakers must consider strengthening urban social safety nets, protecting land rights, and diversifying LPG import sources to reduce dependence on a single chokepoint.

Key Facts at a Glance

India's LPG Import Dependency~60%

LPG Imports via Strait of Hormuz~90%

Bengaluru Hotels Receiving Gas (March 10)1 in 10

Mumbai Commercial Refill Delays2–8 days

Domestic Refill Gap Extension21 to 25 days

LPG Cylinder Price Hike₹60

You've read the full analysis. Now test your understanding.

Practice exam-style questions based on this article.

Q1Static LinkageEasyUPSC, SSC, State PSC, Banking

Which Act was invoked by the Government of India to regulate LPG distribution during the Strait of Hormuz crisis?

Q2Statement-basedHardUPSC, SSC

Consider the following statements regarding the impact of the Strait of Hormuz closure:

1. India imports approximately 60% of its LPG requirements, and about 90% of those imports come through the Strait of Hormuz.

2. The government reduced the gap between domestic LPG refills from 25 days to 21 days to increase supply.

3. The CMIE household panel data from the Covid-19 reverse migration showed that diets improved when workers returned to villages.

Which of the statements given above is/are correct?

Q3Data-centricMediumUPSC, Banking, SSC

According to the article, what was the increase in the price of an LPG cylinder within days of the crisis?

Q4Application/ImpactMediumUPSC, State PSC

What is the primary social vulnerability highlighted by the Strait of Hormuz crisis according to the article?

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Strait of Hormuz Closure: 60% LPG Imports Disrupted, Govt Invokes Essential Commodities Act, Migrant Food Security at Risk

Exam Lens

Quick Exam Facts From News

1-Minute Revision

News Snapshot

LPG Supply Disruption

Government Emergency Measures

Migrant Worker Vulnerability

Detailed Analysis & Strategic Depth

Context / Background

Core Analysis & Implications

Future Outlook / Way Forward

Prelims Flashpoints

Key Facts at a Glance