A long queue of autorickshaws was seen at an Auto LPG Dispensing Station in Bengaluru as autodrivers wait to get their vehicles refuelled, even as the government continues to allay fear over fuel supply concerns amid the West Asia conflict. The government, through its daily inter-ministerial briefing, has assured that there is an adequate availability of petrol, diesel, LPG, and PNG across the country.

The US-Israel war on Iran has affected shipments through the Strait of Hormuz, a crucial route for Indian crude oil import from the Middle East.

Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma, on Wednesday reiterated that the crude oil inventories of India is sufficient for the “next two months”. The senior government official reassured that fuel supplies remain stable, and that the refineries are running at full capacity and there have been no reports of shortages at retail outlets.

Highlighting global price trends, she noted: “Around two months ago, Brent crude was trading in the range of $70 per barrel, and today it has crossed $100 per barrel.” Despite this sharp rise, she emphasised, “No increase has been made in petrol and diesel prices for domestic consumers.”

Despite the assurance, several cities continue to report panic buying.

‘Customers are filling up fearfully’

Earlier this week, motorists across the Mumbai Metropolitan Region (MMR), particularly in Mumbai city, Thane, Kalyan and Navi Mumbai, queued up for hours at petrol stations amid fears of a looming fuel shortage.

“Customers are filling up fearfully,” one operator in the Chembur area said, according to an NDTV report.

In Hyderabad, the long queues, which started from early morning, continued till late at night.

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The government has assured that it is talking all the necessary measures to “protect domestic consumers from international price volatility”.

“Petrol and diesel prices have not been increased since April 6, 2022, and in March 2024, prices were reduced by Rs 2, which continues to remain in effect,” Sujata Sharma said at a briefing on Wednesday.

To protect domestic consumers from international price volatility, the Government of India reduced excise duty to ensure that there is no increase in prices, she said. However, she acknowledged, “Prices have been maintained, resulting in under-recoveries for our Oil Marketing Companies (OMCs) on both petrol and diesel, Sharma responded to the government measures.

Sufficient stock of petrol and diesel

The Indian government has imposed an export levy in order to ensure the availability of ATF and diesel in the domestic market.

During a recent briefing, Sujata Sharma also addressed concerns regarding natural gas supply. India’s import dependence on LPG is around 60 per cent. Following the war, the international LPG prices (Saudi CP benchmark) have risen sharply from $522 to $780.

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Despite this increase, the government has not increased domestic LPG cylinder prices.

The burden is being absorbed by the government, she said, adding that the Centre is extending financial support to Oil Marketing Companies (OMCs) to cover their losses. “In 2023, the government provided around Rs 22,000 crore to OMCs, and for 2025-26, approximately Rs 30,000 crore has been approved to cover such losses.”

On supply status, Sharma said, “No dry-out has been reported at any LPG distributorship. Around 60 lakh cylinders were delivered yesterday.” She also noted, “For commercial LPG, the government has ensured about 70 per cent of supplies,” adding, “Additional kerosene has also been allocated to states and Union Territories as an alternative fuel.”