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Informist, Wednesday, Mar. 11, 2026

 

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--Govt: India crude supply remains secured 
--Govt: India secured more oil from diversified sources than Strait of Hormuz 
--CONTEXT: Comments at interministrial briefing on West Asia conflict 
--Govt: Secured adequate supplies of energy from various sources 
--Govt: 2 crude cargoes enroute India, will help further stabilise situation 
--Govt: Most refineries working at 100?pacity 
--Govt: Diverting commercial natural gas to domestic use 
--Govt: Domestic LPG production increased 25% due to govt steps 
--Govt: Giving priority to hospitals, education sector in non-domestic LPG use 
--Govt: Absorbed significant increase in cost of LPG cylinders 
--Govt: Without intervention, LPG cylinder prices would have been higher 
--Govt: India LPG prices lower than many neighbouring countries 
--Govt: INR 300 bln approved for OMCs for LPG cylinder 
--Govt: Issued delivery authentication system to avoid panic booking of LPG 
--Govt: Hiked gap for 2nd LPG booking to 25 days to avoid hoarding 
--Govt: All govt steps temporary, issued to address current unrest 
--Govt: Continuously monitoring energy supply disruption issue 
--Govt: Port operations remain stable, monitoring vessels, cargo 
--Govt: Urge public not to book LPG cylinders due to panic 
--Govt: Fully committed to ensure safety of seafarers 
--Govt: Welfare of Indian diaspora in Gulf region of utmost importance 
--Govt: External affairs minister in touch with counterparts, including Iran 
--Govt on casualties in West Asia conflict:2 Indian nationals dead, 1 missing 
--Govt: In touch with state govts to avoid black marketing of LPG 
--Govt: Most refineries running at 100?pacity, some over 110% 
--Govt: All oil cos asked to maximise LPG production 
--Govt: Asked oil cos to review pdt mix, prioritise LPG production 
--Govt: LPG stock adequate, taking all steps to ensure domestic availability

 

NEW DELHI – To mitigate the risk of a fuel shortage, the government on Wednesday urged citizens to avoid panic-booking of liquefied petroleum gas cylinders and said that measures undertaken by it recently had led to rise in production of LPG by 25%. According to Sujata Sharma, joint secretary in the oil ministry, various measures have been taken over the last few weeks to ensure smooth supply of LPG and liquefied natural gas.

 

"All the measures are temporary, and are issued to address the current uncertainty," Sharma said in the first formal media briefing since the conflict broke out in West Asia on Feb. 28.

 

Following the closure of the Strait of Hormuz, India has secured more oil from diversified sources which are not part of the Gulf region in order to ensure domestic availability of energy supplies, Sharma said. The official said two cargoes are enroute to India, which will further help in stabilising the situation. According to another official, four Indian vessels carrying both crude and gas are on the east of the Strait of Hormuz, which is an open route, and are enroute India. Twenty-four vessels are, however, on the west of the now-closed strait, and will remain stuck until the issue is resolved, the official added.

 

The development comes as India faces supply constraints after Israel and the US launched joint military strikes on Iran on Feb. 28, prompting Tehran to hit back at the Jewish state and at US military installations around the Persian Gulf. Iran also shut the Strait of Hormuz, a narrow waterway that connects the Gulf to the Arabian Sea and the Indian Ocean, resulting in a sharp rise in prices of crude oil and natural gas.

 

A fifth of global crude oil supply flows through the Strait of Hormuz. About half of India's crude oil imports--primarily from Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait--also pass through the strait, making the country particularly vulnerable to shipping bottlenecks there and to surging freight and insurance rates.

 

India imported large volumes of LPG from West Asia in 2025, representing 46.9% of its LPG imports. LPG remains the primary cooking fuel for millions of households and any disruption could quickly affect its availability. The government has already issued multiple orders to oil marketing companies as well as to distributors to prioritise LPG supply for domestic consumption over commercial and industrial use. The government has also identified educational institutions and hospitals for prioritising LPG supply within the industrial or commercial sectors.

 

The government has also asked oil marketing companies to dispatch a second cylinder for household use after 25 days of booking, instead of 21 days earlier. This move is aimed at stabilising and pacing out consumption, but over the last two days, panic-booking has triggered nation-wide disruption. Social media and news reports showed citizens flooded distributors' offices to book LPG cylinder, with many unable to even book with the supplier. Sharma said, given this situation, the government has issued a 'delivery authentication system' which will help with systemic booking, and prevent the risk of black marketing. The central government is also in touch with state governments to ensure black marketing of LPG cyclones is avoided.

 

Brent crude oil prices have surged since the conflict broke out, reaching $119.50 per barrel on Monday, the highest since June 2022. It has since cooled off from that level and at 1832 IST, was trading at $92.13 per barrel, still higher than the average of $65 per barrel before the war broke out.

 

To deal with the twin pressure of higher prices and supply crunch, the government has also directed refineries to review and rework their product mix and prioritise the production of domestic-use LPG. These companies – both private and state-owned – were asked to maximise the production of LPG, and even halt the production of some products, if needed. Most refineries are working at 100?pacity, with some working at over 110%, Sharma said.

 

On Saturday, Indian Oil Corp. Ltd. increased the price of domestic and commercial LPG cylinders sold under its "Indane" brand across metropolitan cities by INR 60 per cylinder. Given the situation, there is concern in many quarters about whether there will be a further increase in domestic fuel prices. Sharma said that the government has absorbed significant hit from the higher international fuel prices, and without government's intervention, the price of domestic LPG cylinders would have been much higher. LPG cylinder prices in India are also lower than the prices in many neighbouring countries, Sharma said. The government is already compensating oil marketing companies for their under recoveries in LPG to the tune of INR 300 billion. 

 

Sharma also reiterated that India is comfortably positioned in terms of its energy supply, with energy flowing in from 40 destinations. The inter-ministerial panel formed to oversee the crisis situation is also continuously monitoring the energy supply disruption issue.

 

Foreign ministry spokesperson Randhir Jaiswal, who was also present at the briefing, said that External Affairs Minister S. Jaishankar is in touch with his counterparts in the region, including Iran. Jaiswal also said that welfare of Indian diaspora in the Gulf region is of utmost importance and government is fully committed to ensure safety of seafarers. The government said, due to the conflict in West Asia, two Indian nationals have died and one is missing.

 

Rajesh Kumar Sinha, special secretary in the Ministry of Ports, Shipping and Waterways, who was also present at the briefing, said that the government is in touch with seafarers on the vessels that are stuck at the Strait of Hormuz. All Indian ports and docks remain operational, with the government closely monitoring vessels and cargoes that are flowing in and out, he said.  End

 

US$1 = INR 92.04

 

Reported by Priyasmita Dutta and Sagar Sen

Edited by Ashish Shirke

 

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