India has enough fuel reserves to manage the ongoing West Asia crisis without supply disruptions. Petroleum and Natural Gas Minister Hardeep Singh Puri shared this update during the CII Annual Business Summit in New Delhi.
The minister said India currently holds around 60 days of crude oil supplies. The country also has 60 days of LNG inventories and 45 days of LPG reserves. He said the government acted quickly after tensions increased in West Asia. India expanded domestic production and diversified import sources. The move helped maintain stable fuel supplies across the country.
The focused efforts strengthened India fuel stocks during the global uncertainty. Puri said there was no reason for public concern. He added that the country converted the supply challenge into an opportunity. The minister also highlighted growing financial pressure on state-run oil companies. He said Oil Marketing Companies currently lose nearly Rs 1,000 crore every day.
According to the minister, combined under-recoveries on petrol, diesel, and LPG touched nearly Rs 1.98 lakh crore during the current quarter. Actual losses stand close to Rs 1 lakh crore. He said Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum face severe pressure because fuel prices remain frozen. Petrol and diesel prices have not increased for four years.
At current crude prices, oil companies lose around Rs 14 per litre on petrol. Diesel losses stand at Rs 42 per litre. LPG losses have reached Rs 674 per cylinder. The government also increased domestic LPG production to strengthen India fuel stocks further. Production rose from 36,000 metric tonnes per day to 54,000 metric tonnes daily.
Earlier, around 60 percent of India’s LPG imports moved through the Strait of Hormuz. The government later arranged alternative supply routes to avoid disruptions. Puri said fuel demand remained stable despite geopolitical tensions. Petrol demand increased by nearly six percent during the crisis period. LPG demand reduced slightly due to seasonal factors.
The minister also supported Prime Minister Narendra Modi’s appeal for fuel conservation. He said the message focused on long-term energy security rather than panic. Puri encouraged industries and households to shift toward piped natural gas wherever possible. He said the government continues expanding pipeline infrastructure and LNG supply networks.
The minister confirmed that he reviews the energy situation daily with senior oil sector officials. He also said the current crisis pushed India to rethink its energy storage and supply chain strategies. India now plans to expand refining capacity to 320 million metric tonnes annually by 2030. The country currently has refining capacity of around 260 million metric tonnes.
For the future, the government also plans to increase domestic oil exploration activities. Officials are already engaging with global energy companies for fresh licensing rounds.
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