India has 60 days of oil reserves, govt assures no fuel shortage

The Centre, for the first time since the war in West Asia broke out, released stock details of crude oil, fuels and LPG on Thursday (March 24), stating that the country has about 60 days of oil stock cover and has arranged one full month of LPG supply.

The Ministry of Petroleum and Natural Gas made the revelation in a statement amid reports of panic buying and long queues at petrol pumps and LPG distributors. It further stated that all petrol pumps across the country are adequately stocked and operating normally, with no rationing of petrol or diesel.

‘No fuel shortage’

As for some petrol pumps, especially in smaller towns, finding difficulty in lifting fuel after oil companies put them on cash-and-carry, the ministry stated that steps have been taken to increase credit to petrol pumps to over three days from earlier allowed one day in order to ensure that there is no shortage of petrol and diesel at any pump due to working capital issues of pump owners.

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The ministry further stated, "There is no shortage of petrol, diesel, or LPG anywhere in the country," emphasising that the country's petroleum and LPG supply situation is "fully secure and under control." It added that all retail outlets are adequately stocked and functioning without any disruption, urging the public not to be "misled by a deliberately mischievous, coordinated campaign of misinformation that is being carried out to spread unjustified panic."

Supply disruptions and alternatives

The clarification comes against the backdrop of supply chain concerns following the disruption of crude flows through the Strait of Hormuz, a key transit route that previously accounted for a significant share of India’s imports.

The ministry stated that while nearly half of crude supplies had been affected by the situation, alternative sourcing arrangements have already been secured, ensuring continuity of supply for the next 60 days. Fuel storage levels, it said, are currently sufficient to meet roughly two months of demand.

Refining capacity and supply assurance

Public sector oil marketing companies, Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd also issued separate communications indicating that their fuel stations continue to operate normally and that there is no shortage of petroleum products at the retail level.

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Highlighting India’s refining strength, the ministry noted that the country, which ranks among the largest global refiners and exporters of petroleum products, has maintained stable domestic availability while continuing exports to over 150 countries.

"Every Indian refinery (which turns crude oil into fuels like petrol and diesel) is running at over 100 per cent utilisation," it said. "Crude oil supplies for the next 60 days have already been tied up by Indian oil companies. There is no supply gap,” stated the ministry.

Stock levels and reserve capacity

According to the ministry, India’s total storage capacity stands at 74 days, while "Actual stock cover is around 60 days right now (including crude stocks, products stocks and the dedicated strategic storage in caverns) even as we are on the 27th day of the Middle East crisis."

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It further stated, "Nearly two months of steady supply is available for every Indian citizen regardless of what happens globally." Reiterating its position, the ministry added that "Any representation that India's reserves are depleted or insufficient should be dismissed with the disdain it deserves."

LPG supply measures

On LPG availability, which has also come under pressure due to disruptions in shipping routes, the ministry said supply lines have been reinforced through both domestic production and imports. It stated that 800,000 tonnes of LPG cargoes have already been secured and are in transit from multiple countries, ensuring stability in supply.

"Approximately one full month of supply is firmly arranged, with additional procurement being finalised continuously," the statement said.

Domestic output and imports

Domestic production has also been stepped up significantly, with refinery output rising by 40 per cent to around 50,000 tonnes per day, accounting for a majority share of national demand. As a result, import requirements have reduced.

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"The net daily import requirement has consequently come down to only 30,000 tonnes - meaning India is now producing much more than it needs to import," it said.

Addressing concerns triggered by reports of panic buying, the ministry described such incidents as limited and driven by misinformation circulating on social media.

"Despite the surge in demand on such pumps, fuel was dispensed to all the consumers and oil company depots have been operational through the night to ramp up supplies," it said.

Global context and supply stability

The government also pushed back against claims suggesting critically low reserves, including reports of stocks lasting only a few days.

It reiterated that supply conditions remain stable despite geopolitical tensions and that sourcing from a wider network of more than 40 countries has compensated for any disruption.

On natural gas, the ministry said domestic production currently meets a substantial portion of demand, reducing reliance on imports. It also addressed speculation around a shift towards piped natural gas (PNG), stating, "The claim that PNG is being pushed because LPG is running out is misinformation. LPG supply is secure. PNG is simply a better, more affordable and highly convenient fuel for India's households," the statement said.

(With agency inputs)