Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Thursday said India’s crude supply position remains secure despite the ongoing West Asia crisis and disruption to shipping through the Strait of Hormuz.
Speaking in the Lok Sabha, Puri said the world has not faced a moment like the present in the history of the energy sector and noted that the Strait of Hormuz is effectively closed to commercial shipping for the first time in recorded history.
He said India, despite having no role in causing the West Asia conflict, has to navigate through its consequences.
"The refineries are operating at high capacity utilisation. In several cases, they are exceeding 100%. There is no shortage of petrol, diesel, kerosene, ATF or fuel oil. The availability of petrol, diesel, aviation, turbine fuel, kerosene and fuel oil is fully assured..." he said.
Responding to concerns raised by Leader of the Opposition Rahul Gandhi, Puri said the Modi government's utmost priority is that kitchens of India's 33 crore families do not face any fuel shortage.
Puri added that India has significantly diversified its crude oil import sources over the years, reducing dependence on shipments passing through the Strait of Hormuz.
"Non Hormuz sourcing has risen to approximately 70 % of crude imports, up from 55 % before the conflict began. India's sources grew from 40 countries as against 27 in 2006 and 2007. This structural diversification built through sustained policy over successive years has given us options that other nations find themselves without. The refineries are operating at high capacity utilisation. In several cases, they are exceeding 100%. There is no shortage of petrol, diesel, kerosene, ATF or fuel oil. The availability of petrol, diesel, aviation, turbine fuel, kerosene and fuel oil is fully assured. Retail outlets across the country are stocked and supply chains for these products are functioning normally..." he said.
"This is not the moment for rumour-mongering or fake narratives. India is navigating the most severe global energy disruption in recorded history," he said, adding that crude supply is flowing and gas is prioritised for homes and farms.
Gas is prioritised for homes and farms, and LPG (liquified petroleum gas) production has been stepped up by 28 per cent, the minister noted.
"Consumer prices are held far below what markets and regional comparators would dictate. Schools are open. Petrol is on the forecourt. Every citizen, regardless of political affiliation, has a stake in that," he said.
"India must stand united behind its energy warriors, behind the institutions managing this crisis, and behind the national interest."
Amid sloganeering by Opposition members, Puri said that due to Prime Minister Narendra Modi’s effective diplomatic outreach, India has secured crude volumes that exceed what the disrupted Hormuz route would have delivered in the same period.
Before the crisis, about 45 per cent of India’s crude imports transited the Hormuz route.
"Non-Hormuz sourcing has risen to approximately 70 per cent of crude imports, up from 55 per cent before the conflict began," he said, adding that India now sources crude from 40 countries, compared with 27 in 2006-07.
Puri highlighted the impact on neighbouring nations, saying one country has shut schools for two weeks, moved government offices to a four-day workweek, halved fuel allowances for official vehicles, and taken 60 per cent of government vehicles off the road. Another neighbour closed universities early and advanced the Eid al-Fitr holiday to save fuel. Southeast Asian countries have also imposed energy rationing and conservation measures.
India was previously importing about 60 per cent of its LPG requirements from Gulf countries, including Qatar, UAE, Saudi Arabia, and Kuwait, while 40 per cent was produced domestically. Puri said procurement has now been actively diversified, with cargoes secured from the US, Norway, Canada, Algeria, and Russia, in addition to Gulf sources.
The LPG Control Order issued on March 8 directed all refineries to maximise LPG yields.
"Hence, in the last five days, LPG production has been increased by 28 per cent through refinery directives, and further procurement is actively underway," he said, noting that the standard time from booking to delivery for domestic LPG cylinders remains 2.5 days, unchanged from pre-crisis norms.
Hospitals and educational institutions have been placed on uninterrupted priority supply, he said, and field reports indicate that hoarding and panic-booking are driven by consumer anxiety rather than actual supply shortages.
"The House should be clear on this: the rush-booking pressure in some localities reflects a demand distortion, not a production or supply failure," Puri said.
Delivery Authentication Code coverage is being expanded from 50 per cent to 90 per cent of consumers, ensuring cylinders are logged as delivered only when confirmed through a one-time code on the registered mobile number, preventing undocumented diversion. A minimum booking gap of 25 days in urban areas and 45 days in rural and remote areas has also been introduced to manage demand.
Commercial LPG has been regulated to prevent black marketing, he said, adding that it is sold in a completely deregulated market at market prices without subsidy. Any individual or business can purchase cylinders without booking requirements, but in a supply-constrained environment, unrestricted sales could lead to hoarding and resale at inflated prices.
"In a supply-constrained environment where public anxiety is elevated, this deregulated structure creates a direct and uncontrolled pathway for hoarding, diversion, and resale at inflated prices," Puri said. He added that the government has regulated this channel responsibly, with clear priorities and transparent allocation.
Alternative fuel options are being activated to ease pressure on LPG and gas channels, with kerosene made available through retail and PDS channels, and fuel oil for industrial and commercial consumers.
Puri also highlighted measures to shield consumer prices from global fluctuations. Despite Saudi contract prices rising 41 per cent between July 2023 and March 2026, the PMUY beneficiary price has fallen 32 per cent to Rs 613 per 14.2 kg cylinder in Delhi. The non-subsidised consumer price stands at Rs 913, against a market-determined price of about Rs 987. Of the Rs 134 per cylinder adjustment due to global prices, the government absorbed Rs 74.
"The effective additional cost for a PMUY household is under 80 paise per day. Equivalent LPG prices in the neighbourhood stand at Rs 1,046 in Pakistan, Rs 1,242 in Sri Lanka, and Rs 1,208 in Nepal. OMC compensation of Rs 30,000 crore has been approved against losses of approximately Rs 40,000 crore in 2024-25," he said.
He concluded that consumer prices are being held far below what market forces and regional comparators would dictate, ensuring both availability and affordability.
(With inputs from PTI)