India maintains sufficient stocks of crude oil, liquefied natural gas (LNG), and liquefied petroleum gas (LPG), according to Union Minister of Petroleum and Natural Gas Hardeep Singh Puri.
These assurances come as tensions in the Middle East threaten global supply routes. Maintaining energy stability is critical for India to avoid domestic price volatility and economic disruption during geopolitical instability.
Puri said that the country faces no supply-side constraints despite ongoing disruptions around the Strait of Hormuz. He said that India has not increased fuel prices in the last four years [1].
"Let me tell you categorically, we have no supply side problems," Puri said. "The country has more than enough stocks of crude oil, LNG and LPG" [2].
To reduce reliance on imports, the government has increased domestic LPG production. This output now meets nearly 60% of the country's total requirement [3]. This strategic shift aims to insulate the domestic market from external shocks in West Asia.
Government data indicates that over 18 crore LPG cylinders were delivered during the West Asia crisis [4]. Additionally, the government reports that 602 LMT of food stocks are available to ensure broader resource security [4].
Puri said the current inventory levels allow the government to keep fuel prices stable. While some analysts suggest the government may face difficult pricing decisions if regional conflicts escalate, the minister said that the current stock levels are adequate to prevent immediate hikes [1], [5].
“"Let me tell you categorically, we have no supply side problems."”
By increasing domestic LPG production to 60%, India is actively reducing its vulnerability to maritime chokepoints like the Strait of Hormuz. While the government is emphasizing stability to prevent market panic, the long-term challenge remains balancing these strategic reserves against the volatile pricing of the global crude market during prolonged geopolitical conflict.
