Daily News - Friday, 13 March 2026
India’s retail inflation hits 11-month high at 3.21% in February 2026 (Mint)
India’s retail inflation rose to 3.21% in February 2026, according to provisional data from the Ministry of Statistics and Programme Implementation (MoSPI). This marks an 11-month high, driven by higher prices of food & beverages (3.47%), clothing, and housing (2.12%) under the new CPI series (base year 2024). States showed wide variation: Kerala reported the highest food inflation at 6.17%, followed by West Bengal at 5.54%, while Telangana recorded 5.02% retail inflation, the highest overall. Items like gold, silver, platinum jewellery, tomatoes, cauliflower, and copra saw strong inflationary pressure, while garlic, onion, potato, arhar, and litchi remained in deflation. The war in West Asia pushed crude oil above USD $100 (INR ~8,300) per barrel, though the International Energy Agency (IEA) announced a release of 400 million barrels from reserves to stabilize prices. Economists, including Devendra Kumar Pant (India Ratings & Research), expect March inflation to rise further to 3.7%, with the Reserve Bank of India (RBI) likely keeping policy rates unchanged at its April meeting.
India-US ties reset as Reliance inks 20‑year fuel deal (Business Today)
US President Donald Trump announced a landmark USD $300 Billion (INR ~25 Trillion) refinery project at the Port of Brownsville, Texas, with Reliance Industries as a key partner. The refinery, led by America First Refining, will process 60 million barrels of US shale oil annually, making it the first new US refinery in nearly 50 years. Trump praised Reliance as India’s largest privately held energy company, highlighting the 20-year fuel offtake agreement signed to stabilize global markets. For Mukesh Ambani, whose conglomerate posted USD $9 Billion (INR ~750B) net profit in FY24-25, the deal represents both economic diplomacy and a reset in India-US ties after months of criticism over India’s Russian oil trade. Analysts, including JPMorgan, estimate Reliance’s equity commitment could reach USD $10 Billion (INR ~830B) under a 30-70 equity-debt structure. The partnership strengthens India’s energy reciprocity index with Washington, making sanctions or tariffs harder to impose without hurting US energy security, while showcasing Reliance’s refining expertise from its Jamnagar complex (NCI 21.1).
Iran war hits India’s kitchens: LPG shortages push prices to ₹2,300 (USD $28) (Money Control)
The Iran war has begun to hit India’s kitchens, with restaurants in Bengaluru, Chennai, and Mumbai reporting sudden shortages of commercial LPG cylinders. Prices for 19-kg cylinders have jumped to ₹2,100-₹2,300 (USD $25-28), compared with ₹1,850 a few weeks ago and ₹1,650 a month earlier. The disruption stems from Iran’s restrictions on shipping through the Strait of Hormuz, a corridor that carries nearly 20% of global oil shipments, directly affecting India, which imports 85% of its oil needs. The Ministry of Petroleum and Natural Gas has prioritized household LPG supply, leaving hotels, restaurants, and small eateries facing operational stress, with some cutting menu items or switching to induction stoves. Industry bodies warn that prolonged shortages could hit the hospitality sector, which employs millions, while distributors have been asked to reserve supply for essential services like hospitals and schools. Analysts note that over 50% of India’s LPG consumption is import‑linked, exposing structural vulnerabilities and prompting calls for diversification into piped natural gas networks and electric cooking alternatives.
India diversifies LPG imports to US, Norway, Canada, Russia (Reuters)
Oil Minister Hardeep Singh Puri announced that India is boosting LPG imports from the United States, Norway, Canada, and Russia to offset tightening Gulf supplies caused by the US-Israel conflict with Iran. India, which consumed 33.15 million metric tons of LPG last year, previously sourced about 60% of its demand from Gulf countries, but has now diversified procurement. The government has invoked emergency powers, directing refiners to maximize LPG production and cut industrial sales to protect supply for 333 million households with LPG connections. The Environment Ministry has allowed temporary use of biomass, kerosene, and coal as alternate fuels in the hospitality sector to free up LPG for essential cooking needs. Puri emphasized that domestic LPG supply remains secure, with delivery cycles unchanged, and noted that non‑Hormuz crude sourcing has risen to 70% of India’s total imports, ensuring broader energy stability. Oil marketing companies will allocate 20% of monthly commercial LPG demand in coordination with state governments to prevent hoarding and black‑marketing.
