India Secures Fuel Supply Amid Global Crisis; Locks 8 Lakh MT LPG Imports

India has reinforced its energy security strategy amid escalating geopolitical tensions in West Asia, securing adequate crude oil supplies for the next 60 days and locking in large-scale LPG imports from multiple global partners.

The Ministry of Petroleum and Natural Gas confirmed that despite disruptions around the Strait of Hormuz, the country continues to receive sufficient crude oil from a diversified network of more than 41 international suppliers. Increased procurement from western markets has effectively offset any supply constraints.

“All refineries are operating at over 100% capacity, and there is no supply gap,” the ministry stated, emphasising that India’s fuel ecosystem remains stable even after several weeks of geopolitical stress.

India currently holds a total reserve capacity of approximately 74 days, with an actual stock cover of around 60 days. This includes crude oil, refined products, and strategic petroleum reserves stored in underground caverns.

To further strengthen domestic supply, refinery production has been ramped up by 40%, raising daily LPG output to around 50,000 metric tonnes—meeting over 60% of the country’s total requirement. As a result, the daily LPG import requirement has been reduced to about 30,000 metric tonnes.

In addition to domestic production, India has secured 800,000 metric tonnes (8 lakh MT) of LPG imports from countries including the United States, Russia, Australia, and other global suppliers. These shipments are currently en route and will be distributed across 22 LPG import terminals nationwide.

Oil marketing companies are maintaining robust distribution, delivering over 50 lakh LPG cylinders daily. Demand, which had spiked to 89 lakh cylinders due to panic buying, has now stabilised. Authorities have also increased commercial cylinder allocation to 50% in coordination with state governments to prevent hoarding and black marketing.

As part of its long-term strategy, the government is actively promoting a shift toward piped natural gas (PNG) in areas where infrastructure is available. PNG offers a continuous supply directly to households, reducing dependency on LPG cylinders and improving efficiency.

Meanwhile, India has expanded its oil procurement strategy, including increased purchases from Russia following global policy shifts. Reports indicate that Indian refiners have booked significant volumes of Russian crude, exploring alternative payment mechanisms to reduce reliance on the US dollar.

Officials reiterated that India’s diversified sourcing strategy, increased domestic production, and strong infrastructure ensure uninterrupted fuel availability, even as global energy markets remain volatile.