India Has Adequate Fuel Reserves, Commercial LPG Back to 70%: Centre

The Ministry of Petroleum and Natural Gas on Friday assured that India currently has adequate reserves of crude oil, petrol, and diesel, and is taking proactive steps to maintain uninterrupted supplies of LNG and LPG despite disruptions caused by the ongoing conflict in West Asia.

At a joint inter-ministerial briefing, Joint Secretary (Marketing & Oil Refinery) Sujata Sharma stated that the country's crude oil inventories are sufficient, with supplies secured for the next two months. She highlighted that Indian refineries are operating at full or even above capacity, helping maintain steady fuel availability. Additionally, domestic LPG production has increased by around 20 per cent, further strengthening the supply situation.

Sharma acknowledged that the geopolitical tensions in the Middle East have impacted global energy markets, leading to a rise in crude oil prices as well as LNG and LPG rates. She noted that the conflict has disrupted supply chains, creating a challenging environment. However, she emphasised that the Government of India has implemented a series of calibrated measures to effectively manage the situation and minimise its impact on domestic consumers.

Given India's heavy reliance on LPG imports-nearly 90 per cent of which pass through the strategically critical Strait of Hormuz-the government decided to prioritise household consumption. As part of this strategy, commercial LPG supplies were temporarily curtailed to ensure that domestic needs were met without disruption.

Over time, these restrictions have been gradually eased in a phased manner. Initially, 20 per cent of commercial LPG supplies were restored, followed by an additional 10 per cent to support the expansion of the piped natural gas (PNG) network. This was subsequently increased to 50 per cent, and has now reached 70 per cent, reflecting improving supply conditions and careful resource management.

Sharma also shared that since March 14, approximately 30,000 tonnes of commercial LPG have been distributed to various sectors. Priority has been given to essential services and industries, including restaurants, roadside eateries, hotels, industrial canteens, and migrant workers. Key industrial sectors such as steel, automobiles, textiles, chemicals, dyes, and plastics have also been prioritised to ensure continuity in economic activity.

In addition, around 30,000 small 5-kg LPG cylinders have been distributed to migrant workers under the Free Trade LPG category, addressing the needs of vulnerable groups during this period of uncertainty.

The government maintains that these targeted and phased measures have helped stabilise supply chains and ensure that essential fuels remain available across the country, even amid global disruptions.