Sufficient crude oil supplies for two months: Govt amid West Asia crisis

India has sufficient crude oil supplies to last for two months, the Centre said on Wednesday (April 1). The remarks come at a time when the escalating conflict in West Asia has led to concerns in the country over energy security and LPG supply.

Addressing an inter-ministerial briefing, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said that the refineries in the country are functioning at the maximum level, adding that there have been no reports of dry out at retail outlets.

"Our refineries are operating at the highest levels. There have been no reports of any dry-out at retail outlets,” said Sharma.

‘No price hike despite global surge’

She pointed out that despite the sharp increase in crude oil prices in the global market, there has been no hike in the prices of petrol and diesel in the country.

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"Around two months ago, Brent crude was trading in the range of $70 per barrel, and today it has crossed $100 per barrel. However, no increase has been made in petrol and diesel prices for domestic consumers,” said Sharma.

Excise cuts and industry impact

Elaborating further, the official stated that in a bid to shield domestic consumers, the Centre has reduced excise duty to prevent an increase in fuel prices.

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"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,” she said as quoted by ANI.

"To ensure the availability of ATF and diesel in the domestic market, the Indian government has imposed an export levy,” she added. Assuring people of a sufficient stock of petrol and diesel being available in the country, she urged them to avoid panic buying.

Gas supply and expansion push

As for the government’s position on fuel availability, Sharma said measures have been taken to maintain steady domestic supplies. “To ensure the availability of ATF and diesel in the domestic market, the Indian government has imposed an export levy,” she said.

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Seeking to reassure consumers, she added, “I would like to assure that we have sufficient quantities of petrol and diesel available, and I request all citizens to kindly avoid panic buying.” On gas distribution, Sharma noted, “100 per cent supply has been ensured for domestic consumers and CNG transport.”

LPG dependence and fiscal support

Highlighting expansion, she said, “Around 325,000 connections were supplied with gas in March, 285,000 new connections were provided, and 350,000 new consumers registered.”

As for LPG supply, she stated, “Our import dependency is approximately 60 per cent,” adding, “International LPG prices… have increased… However… no increase has been made.” She said OMCs will face under-recoveries. She noted government support and said no supply disruptions have been reported.