Summary of this article
India holds crude oil and fuel inventories sufficient for six to eight weeks.
Refiners are maintaining about 25 days of stock and additional strategic reserves available.
The government says it is “reasonably comfortable” for now, monitoring the situation round-the-clock and exploring alternative crude, LNG and LPG sources if disruptions persist.
India has crude oil and fuel stocks sufficient for six to eight weeks and is in a “reasonably comfortable” position to avoid any immediate supply shortages of key fuels such as petrol, diesel and liquefied petroleum gas (LPG) amid the ongoing military conflict in West Asia, a senior official from the Ministry of Petroleum and Natural Gas (MoPNG) said.
The conflict, which began on Saturday with Israel and the US launching military strikes on Iran and Tehran retaliating by targeting neighbouring countries hosting American military assets, has effectively stalled shipments through the critical chokepoint of the Strait of Hormuz, a key transit route for much of India’s oil and gas supplies.
In the case of liquefied natural gas (LNG), India’s buffer is thinner, as stockpiling LNG is considerably more complex than storing crude oil and petroleum fuels. Besides the sharp disruption to cargo movement through the Strait of Hormuz, India’s largest LNG supplier, Qatar, has halted LNG production after some of its facilities were attacked by Iran.
The MoPNG official, speaking on condition of anonymity, said the government is closely monitoring developments and does not anticipate a significant LNG supply disruption if Qatar’s production pause lasts a week to 10 days. If it extends beyond that, additional measures such as domestic supply adjustments may be considered. Indian oil and gas firms are also exploring alternative LNG cargoes from other markets, while parallel efforts are underway to secure alternative crude oil and LPG supplies.
In recent months, about 2.5–2.7 million barrels per day (bpd) of India’s crude imports—roughly half of total oil imports—have transited the Strait, mainly from Iraq, Saudi Arabia, United Arab Emirates and Kuwait. Over the longer term, the average share is around 40%. India is the world’s third-largest crude oil consumer, with import dependence exceeding 88%. A significant portion of its gas consumption is also met through imports, making West Asian supplies critical.
India relies on LNG to meet about half of its natural gas requirements, with roughly half of LNG imports—from Qatar and the UAE—passing through Hormuz. For LPG, the majority of domestic demand is met via imports, more than 80% of which move through the narrow waterway. Cargo traffic through Hormuz has come to a halt after Iran warned of potential attacks on ships, prompting insurers and shipping companies to avoid the route.
According to the official, Indian refiners currently hold crude stocks sufficient for around 25 days, with about half expected to be replenished continuously through supplies from regions not dependent on Hormuz. These inventories include oil stored in refinery tanks, pipelines and shipments in transit. In addition, India maintains strategic petroleum reserves estimated to cover about another week of daily consumption, which stands at 5.6 million bpd.
Separately, the MoPNG said in a statement that the country is “well stocked with crude oil and inventories of key petroleum products” to manage short-term disruptions arising from the West Asia conflict. “…in the last few years, India has ensured both availability and affordability of energy for its population by diversifying its sources. Indian energy companies now have access to energy supplies that are not routed through the Strait of Hormuz. Such cargoes will remain available and help mitigate supplies that may be temporarily affected enroute through the Strait of Hormuz,” the ministry said.
“The Ministry has established a 24×7 Control Room to continuously monitor the supply and stock position of petroleum products across the country. At present, the Government is reasonably comfortable in terms of stocks. Safeguarding the interests of Indian consumers remains the highest priority. Based on continuous monitoring, the Government is cautiously optimistic that phased measures can be taken, if required, to further mitigate the situation,” it added, without disclosing specific stock levels.
(The Indian Express reported)
