New Delhi: With the fate of a tentative US‑Iran agreement over reopening the Strait of Hormuz still unresolved, the central government has instructed state-run fuel retailers to expand liquefied petroleum gas (LPG) storage and keep at least 30 days of supply on hand amid concerns over disruptions from the recent conflict in West Asia, PTI reported.
Sujata Sharma, joint secretary in the petroleum ministry, told reporters, “We are working on the strategic reserves. Oil marketing companies have been asked to work out (a plan) to have LPG reserves for a minimum of 30 days with them, and they are working on it.”
The ministry has asked oil marketing companies (OMCs) including Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL), and Hindustan Petroleum Corp Ltd (HPCL) to prepare proposals for additional storage beyond routine commercial inventories. The move follows supply interruptions from the three‑month war in West Asia that affected energy shipments to India.
New Delhi relies heavily on the Gulf region for energy. Roughly 40% of its crude, 65% of natural gas, and 90% of LPG imports previously sourced from Gulf suppliers were hit by the conflict, forcing authorities to ration LPG supplies to commercial users even as refineries and domestic production compensated elsewhere.
Sharma said India was also working to increase crude oil storage capacity and noted reassuring operational signals: “No dry-out reported at any LPG distributorship,” she added, while flagging consumption trends, “abnormal sale is being observed at many petrol pumps.”
The petroleum ministry said India holds sufficient stocks of petrol, diesel, LPG, crude oil, and natural gas. Indian refineries are operating near capacity and LPG production has climbed to an all‑time high of about 52,000 tonnes per day, officials said.
Petrol & Diesel Sales Rise
Retail fuel sales have surged, driven in part by agricultural demand and a shift from private to state-run outlets because of price differences. Over 150 districts recorded petrol sales growth of more than 30%, with 14 districts seeing sales double. Diesel sales rose by over 30% in 156 districts and more than 100% in six districts.
Sharma pointed to shifting market shares: private fuel retailers’ diesel sales have fallen 38%, while state-run OMCs reported a 29% drop in bulk diesel sales. Meanwhile, IOC, BPCL and HPCL—together about 90% of the market—have increased pump prices by nearly ₹7.50 per litre since 15 May.
The government has directed states and union territories to form special teams to prevent hoarding and black marketing and urged consumers to buy only from authorised outlets as it closely monitors the evolving situation.
