India has directed state-run oil marketing companies to maintain liquefied petroleum gas reserves sufficient to meet at least 30 days of domestic demand [1, 2].
The mandate aims to safeguard the national energy supply against potential disruptions in West Asia. Geopolitical instability, specifically the impact of the situation in Iran, has increased the risk of supply chain interruptions for fuel imports [2, 3].
State-run oil marketing companies, known as OMCs, must now ensure they have enough LPG on hand to bridge a month-long gap in deliveries [1, 3]. In addition to maintaining these minimum levels, the government has instructed these firms to develop plans to expand their overall storage capacity [1, 2].
This directive comes as India manages a domestic LPG production rate of approximately 72,000 metric tonnes per day [1]. Because domestic production does not meet total national demand, the country remains reliant on international markets, making it vulnerable to regional conflicts.
While the government is prioritizing supply security, it is not offering financial relief to the companies managing these reserves. Sujata Sharma, Joint Secretary of Petroleum and Natural Gas, said, "There is no proposal to provide a bailout package or fiscal support to oil marketing companies (OMCs) despite mounting losses on fuel sales."
The OMCs are now tasked with balancing the cost of expanding infrastructure and increasing inventories without direct state funding. This requirement puts additional pressure on the balance sheets of these state-run entities as they navigate volatile global energy prices and regional instability.
“India has directed state-run oil marketing companies to maintain liquefied petroleum gas reserves sufficient to meet at least 30 days of domestic demand.”
The move signals India's shift toward a more defensive energy strategy to mitigate 'single-point-of-failure' risks in its fuel import chain. By mandating a 30-day buffer, the government is transferring the operational risk and financial burden of energy security to the state-run OMCs, ensuring that domestic consumers are shielded from immediate price spikes or shortages caused by conflict in the Middle East.
