India has enough crude oil supply for 2 months, says govt amid West Asia crisis

Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma, said on Wednesday that the crude oil inventories of India remain adequate, with sufficient supplies for the next two months. Her statement came amid an inter-ministerial briefing during the ongoing West Asia crisis.

Sharma reassured that fuel supplies remain stable, stating that refineries are running at full capacity and there have been no reports of shortages at retail outlets. Highlighting global price trends, she noted: "Around two months ago, Brent crude was trading in the range of $70 per barrel, and today it has crossed $100 per barrel." Despite this sharp rise, she emphasised, "No increase has been made in petrol and diesel prices for domestic consumers."

She added, "Petrol and diesel prices have not been increased since April 6, 2022, and in March 2024, prices were reduced by Rs 2, which continues to remain in effect." "To protect domestic consumers from international price volatility, the Government of India reduced excise duty to ensure that there is no increase in prices." However, she acknowledged, "Prices have been maintained, resulting in under-recoveries for our Oil Marketing Companies (OMCs) on both petrol and diesel, Sharma responded to the government measures.

Sufficient stock of petrol and diesel

She further stated that the Indian government has imposed an export levy in order to ensure the availability of ATF and diesel in the domestic market. Sharma also urged citizens to remain calm, as India has sufficient petrol and diesel in stock.

When Sharma was asked about natural gas supply, she responded, "100 per cent supply has been ensured for domestic consumers and CNG transport, adding that efforts to extend the amount are underway. "Around 325,000 connections were supplied with gas in March, 285,000 new connections were provided, and 350,000 new consumers registered for connections," she said.

On LPG, Sharma said India’s import dependence is around 60 per cent. She also noted that international LPG prices (Saudi CP benchmark) have risen sharply from $522 to $780. Despite this increase, domestic LPG cylinder prices have remained unchanged for consumers.

She added, "Due to this price rise, Oil Marketing Companies (OMCs) will face under-recoveries, as they have in the past." Noting government support, she said, "In 2023, the government provided around Rs 22,000 crore to OMCs, and for 2025-26, approximately Rs 30,000 crore has been approved to cover such losses."

On supply status, Sharma said, “No dry-out has been reported at any LPG distributorship. Around 60 lakh cylinders were delivered yesterday.” She also noted, "For commercial LPG, the government has ensured about 70 per cent of supplies," adding, "Additional kerosene has also been allocated to states and Union Territories as an alternative fuel."