India has secured crude oil supplies for the next 60 days and a month’s stock of cooking gas, ensuring stable fuel supplies despite disruption in shipments from West Asia, the oil ministry said in a statement on Thursday, allaying apprehension of fuel shortage which has led to panic buying in some parts.
India, the world’s third biggest oil consumer and importer, was buying over 40 per cent of its oil imports from West Asia. Those supplies are disrupted due to the US-Israel war on Iran. Higher availability of crude in global markets, mainly from the Western hemisphere, has helped offset the shortfall, the government said.
Taking advantage of a temporary US waiver, Indian refiners have also ramped up purchases of Russian crude, securing millions of barrels to fill the supply gap.
“Despite the situation at the Strait of Hormuz, India is today receiving more crude oil from its 41-plus suppliers across the world than what was previously arriving through the Strait,” the ministry said.
As a net exporter of petroleum products, India’s domestic availability of petrol and diesel remains structurally secure, the government said.
Separately, public sector Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) put out posts informing that their respective pumps were operating normally and there was no shortage of fuel.
The world’s fourth-largest refiner has oil and fuel stocks sufficient to meet 60 days of demand, against a total storage capacity of 74 days, it added.
“Nearly two months of steady supply is available for every Indian citizen, regardless of what happens globally. The next two months of crude procurement have also been secured,” it added.
India has asked refiners to maximise production of liquefied petroleum gas (LPG), used as cooking fuel, as the nation was buying 90 per cent of its LPG imports from West Asian countries like Saudi Arabia.
Domestic daily LPG production has been increased by 40 per cent to 50,000 tonnes against a requirement of 80,000 tonnes, it said, indicating 62.5 per cent of consumption was being met internally.
In addition, Indian companies have secured 800,000 tonnes of LPG cargoes from the US, Russia, Australia, and other countries, it said.
These shipments, arriving across India’s 22 LPG import terminals, provide roughly one month of assured supply, with further procurement underway, the government said.
While the ministry sought to allay fears on fuel, it has also imposed restrictions on LPG, allowing booking for a new cylinder only after a 25-day gap following delivery. The oil companies temporarily considered extending the gap to 35 days before restoring the ongoing system.
“Oil companies are successfully delivering over 50 lakh cylinders every day. Cylinder demand had gone up to 89 lakh cylinders due to panic ordering by consumers and has now come down to 50 lakh cylinders again,” it added.
On natural gas, the ministry said India produces 92 million standard cubic meters per day of natural gas domestically out of a total daily requirement of 191 mmscmd, making India less import-dependent on gas than on LPG.