Middle East War: India’s fuel supply remains fully secure despite Hormuz crisis, says Hardeep Puri

Despite concerns over the Strait of Hormuz being shut down, India’s fuel supply stands strong. Petroleum Minister Hardeep Puri confirmed in the Lok Sabha that there's no shortage of petrol, diesel, or kerosene, attributing the current rush to pani...

The Strait of Hormuz has been effectively closed to commercial shipping for the first time in recorded history, but India’s fuel supply remains secure, Petroleum Minister Hardeep Puri assured the Lok Sabha on Thursday.

Addressing concerns over panic buying, Puri clarified, “Panic on LPG supply [is] driven by consumer anxiety rather than supply shortage,” adding, “There is no shortage of petrol, diesel, kerosene.” Fuel retail outlets are fully stocked, and supply chains are operating normally.

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Highlighting the impact of the Prime Minister’s diplomatic efforts, Puri said India has secured crude volumes exceeding what the disrupted Strait could have delivered. Non-Hormuz sources now account for 70% of crude imports, up from 55% before the crisis, while LPG production has increased by 28% over the past five days. Large LNG shipments are arriving almost daily via alternative routes.

“The world has not faced a moment like this in energy history,” Puri said. India is sourcing cargoes from the US, Norway, Canada, Algeria, and Russia, with refineries running at high capacity utilisation. Alternate fuels are being deployed to ease pressure on LPG and gas.

Also Read: India cooking gas crunch fuels inflation fear as Iran war widens
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Crude and fuel supply

India’s crude imports are secure and diversified, with supply from 40 countries compared to 27 in 2006–07. Refineries are operating at high capacity, ensuring uninterrupted availability of petrol, diesel, aviation turbine fuel, kerosene, and fuel oil. Additional PDS kerosene has been issued to states.

Natural gas and LPG

Domestic natural gas production stands at 90 MMSCMD, supplemented by alternative LNG imports. “Domestic piped gas to homes and CNG for vehicles receive 100% supply with no cuts. Industrial and manufacturing consumers will receive up to 80% of their previous six-month average,” Puri said, noting that fertiliser plants and power generation are fully supported.

LPG imports, previously heavily reliant on Gulf countries, have been diversified to include the US, Norway, Canada, Algeria, and Russia. “In the last 5 days, LPG production has been increased by 28% through refinery directives, and further procurement is actively underway,” he added. Domestic supply is fully protected, with the standard delivery cycle unchanged at 2.5 days.

Puri stressed that localized rush bookings reflect consumer anxiety rather than supply issues. Measures like Delivery Authentication Codes and minimum booking gaps for urban and rural areas have been introduced to curb hoarding and black marketing.
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Commercial LPG and alternate fuels

To prevent diversion, 20% of the average monthly commercial LPG requirement will be allocated in coordination with state governments. Alternate fuels, including kerosene, fuel oil, biomass, and RDF pellets, are being made available for hospitality and industrial users for one month to free LPG for priority consumers.

Also Read: Middle East war: OMCs to start allocating 20% of commercial LPG from today to curb hoarding, says Hardeep Puri
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Consumer prices and state coordination

Despite global price rises, domestic LPG prices remain controlled. The PMUY beneficiary price in Delhi stands at Rs 613 per cylinder, while non-subsidised consumers pay Rs 913—well below regional comparators. State governments are coordinating closely with central authorities, with monitoring committees and anti-diversion operations in place.

Puri concluded, “India is navigating the most severe global energy disruption in recorded history. Crude supply is flowing. Gas is prioritised for homes and farms. LPG production has been stepped up by 28 per cent. Consumer prices are held far below market levels. Schools are open. Petrol is on the forecourt. Every citizen has a stake in that. India must stand united behind its energy warriors, behind the institutions managing this crisis, and behind the national interest.”
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