Middle East Crisis: India Fuel Supply Stable, Says Petroleum Ministry

The Government of India has issued an official statement regarding the country's energy security and fuel supply status amid ongoing geopolitical tensions in the Middle East. Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, addressed the media on Thursday, clarifying that the supply of petroleum products in the country remains balanced, while according to the ministry, crude oil availability is normal, and refineries across the country are operating at full capacity without any disruption. The ministry assured that the supply chain remains stable, and there have been no reports of fuel shortages or 'dry-outs' at petrol pumps in any part of the country.

The ministry acknowledged that any major event in the Middle East naturally impacts India's energy supply, as the country is heavily dependent on this region for its energy needs. According to official data, India imports approximately 90% of its LPG requirements and 47% of its LNG from Qatar. Given the current conflict situation, the government is monitoring the situation at every level, and reviews are being conducted on a daily basis. Officials stated that operations at petrol pumps are normal, and consumers have been advised to avoid panic booking.

Operational Status of Refineries and Fuel Stations

According to the Petroleum Ministry, all public and private sector refineries in the country are currently functioning as per their designated capacities. Alternative routes and sources for crude oil imports are also being considered to deal with any potential disruptions, while the ministry clarified that sufficient stocks of crude oil are currently available, ensuring a continuous supply of petrol, diesel, and other petroleum products in the domestic market. Oil Marketing Companies (OMCs) have been directed to streamline logistics and distribution networks to ensure no delays in last-mile delivery.

Transition to PNG and Incentives for Consumers

The government has shared significant information regarding the supply of natural gas, while according to the ministry, the supply of domestic PNG (Piped Natural Gas) and CNG for vehicles continues at 100% levels. Industrial and commercial LPG users are being encouraged to adopt PNG, especially in areas where the City Gas Distribution (CGD) network is already present. CGD companies have been instructed to expedite the process of issuing new connections and provide incentives to consumers. 25 lakh new PNG connections have been issued so far under this initiative, marking a significant step toward reducing dependence on LPG.

Measures Against Hoarding and Black Marketing

To prevent black marketing and hoarding amid rumors of potential fuel shortages, the central government has established coordination with the states. The Joint Secretary informed that states have activated control rooms at the district level, and raids on suspected locations have been intensified. Officials of oil marketing companies have also been instructed to conduct regular inspections. The government has clarified that strict legal action will be taken against those seeking unfair advantage by exploiting the crisis situation. Monitoring centers have been established at the district level in 31 states, providing real-time updates on the supply chain to the center.

Statistical Overview of Gas Consumption and Imports

According to data released by the PIB, India's total natural gas consumption is approximately 189 MMSCMD. 5 MMSCMD of gas is produced domestically, while the remaining portion is met through imports. 4 MMSCMD of gas supply has been affected due to 'Force Majeure' (unforeseen circumstances). India imports about 60% of its total LPG consumption, 90% of which comes through the 'Strait of Hormuz'. Increased tension on this route has put pressure on the supply chain, but the government has attempted to manage it through alternative arrangements.

Coordination with State Governments for Monitoring

The role of states has been considered extremely important in strengthening the distribution system. The central government has written to all states to adopt a zero-tolerance policy against hoarding. Currently, 17 states have issued allocation orders for commercial gas, and 15 states have issued supply orders for kerosene. District administrations have been directed to monitor supply at the local level and ensure that consumers receive fuel only at the prescribed prices. The government stated that it's keeping a close watch on international market developments and contingency plans are in place to deal with any emergency.