The Indian government has ordered oil marketing companies to build 30-day LPG reserves following a surge in global oil prices [3].
This move comes as the West Asia crisis threatens energy stability and fuel costs across the country. Because India relies heavily on imports for its energy needs, volatility in the Middle East can lead to immediate domestic price fluctuations and supply shortages.
Defence Minister Rajnath Singh chaired a meeting of the Intergovernmental Group on Oil and Gas to review the current state of fuel and LPG supplies [1]. The government said citizens should not engage in panic buying to ensure that essential supplies remain available for all households [1].
The price volatility follows Israeli strikes on Iran, which triggered a global spike in crude oil costs [1]. Within a 10-day period, petrol and diesel prices were increased for the fourth time [4]. Some reports indicate that fuel prices rose by Rs 5 during that window [5], while other reports described the domestic price hike as minimal compared to the global surge [6].
Government officials are monitoring the situation to safeguard essential supplies and prevent market instability [2]. The directive for a 30-day reserve serves as a buffer against potential shipping disruptions or sudden price shocks in the international market [3].
Singh said the government is focused on maintaining stability in the energy sector while the regional conflict persists [2].
“The government said citizens should not engage in panic buying to ensure that essential supplies remain available.”
India's decision to mandate a 30-day LPG reserve highlights the vulnerability of its energy security to geopolitical instability in West Asia. By creating a strategic buffer, the government aims to decouple domestic availability from immediate international shocks, attempting to prevent the kind of social unrest that typically follows sharp increases in cooking gas and transport fuel costs.
