India Ensures Stable Fuel Supply Amid Global Tensions

Sufficient Oil Reserves Confirmed by Ministry

The Ministry of Petroleum and Natural Gas has confirmed that India possesses ample reserves of crude oil, petrol, and diesel. Despite the ongoing conflicts in West Asia, the supply of LNG and LPG remains stable. Sujata Sharma, Joint Secretary for Marketing and Oil Refining, stated during an inter-ministerial briefing that the crude oil reserves are adequate, ensuring fuel supply for the next two months. She highlighted that refineries are operating at full capacity or even beyond, with domestic LPG production witnessing a nearly 20% increase.

Impact of Global Tensions on Fuel Prices

Sharma emphasized that global tensions have affected the supply of crude oil, LPG, and LNG, leading to a rise in international prices. She noted that the current situation resembles a war-like scenario, with ongoing conflicts in the Middle East impacting supply chains. Prices for crude oil and other products in international markets have surged. However, the Indian government has taken several significant measures at various levels to effectively manage this situation.

Government's Strategic Decisions on LPG Supply

As of today, India has sufficient crude oil reserves, and supply for the next two months has already been secured. The situation regarding LPG and PNG is also satisfactory. Refineries are functioning at 100% capacity or more, and there has been a 20% increase in domestic LPG production. Given India's heavy reliance on LPG imports—approximately 90% of which transit through the Hormuz Strait—the government has temporarily reduced commercial LPG supply to prioritize domestic consumers.

Gradual Restoration of Commercial LPG Supply

This reduction was later phased back in, increasing from 20% to 70%. Sharma explained that due to India's significant dependence on LPG imports, with nearly 90% coming through the Hormuz Strait, the government prioritized domestic consumers. Consequently, commercial supply was temporarily halted. Through planned decisions, 20% of commercial supply was restored, followed by an additional 10% to support the expansion of the PNG network. Eventually, this was increased to 50%, and it has now reached 70%.