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Informist, Friday, Apr. 17, 2026

 

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--Govt: LPG demand expected to come down in summer mos, panic booking down 
--CONTEXT: Government officials briefing media on West Asia war 
--Govt on Iran oil purchase via yuan: Meeting domestic demand most important 
--Govt on Iran oil purchase via yuan: Oil cos operating within govt norms

 

NEW DELHI – India's oil marketing companies are focused on meeting domestic fuel demand while adhering to the government's rules and regulations, Sujata Sharma, joint secretary in the ministry of petroleum and natural gas, said Friday. Her comments were in response to questions on whether Indian refiners were settling payments for Iranian oil cargoes using Chinese yuan. "Meeting our domestic needs is the most important thing for us, and within the rules of the government of India, our oil marketing companies are operating," Sharma said while briefing the media on the West Asia war. 

 

Earlier in the day, news agency Reuters reported that Indian refiners are settling oil deals with Iran using yuan, with payments being routed through ICICI Bank. India is importing crude oil from Iran, as the US last month granted a temporary waiver on sanctions for the purchase of Russian and Iranian oil in transit to ease prices that were rising due to the closure of the Strait of Hormuz.

 

US Treasury Secretary Scott Bessent Wednesday said Washington would not extend the waiver, with the exemption on Russian oil already expired on Apr. 11, and the exemption on Iranian oil to lapse on Sunday. India bought crude oil from Iran in April, the first time in seven years, amid the ongoing supply shock following the closure of the strategically important strait. 

 

India is currently facing the worst energy crisis in decades, with a severe shortage of liquefied petroleum gas, a fuel primarily used for cooking. India imports about 60% of its overall cooking gas requirement. Of this, around 90% is routed through the Strait of Hormuz, the narrow waterway shut by Tehran after Israel and the US launched joint military strikes on Iran on Feb. 28. 

 

Indian ministers, including Oil Minister Hardeep Singh Puri and External Affairs Minister S. Jaishankar, have held meetings with their counterparts in the Gulf region to ensure the continuous supply of energy to India and strengthen energy security. According to Sharma, with the US waiver coming to an end, Indian refiners are trying to line up cargoes from various sources to ensure domestic demand is met. "We have to meet the huge demand of our country, and our oil marketing companies are making all efforts," she said.

 

While the impact of disruption in energy supplies has been felt globally, India's primary concern is related to the availability of LPG. Sharma said domestic LPG production from refineries has been increased to support consumption, and the output is around 46,000-50,000 tonnes per day. The current domestic demand for LPG is around 80,000 tonnes daily, she added. 

 

Sharma also said, thankfully, the demand for LPG is expected to come down in the upcoming summer months, as per historical trends. Besides, panic bookings of LPG cylinders have also gone down, with 4.6-5.0 million bookings every day, lower than the over-5-million bookings seen soon after the war broke out.  End

 

US$1 = INR 92.93

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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