India's Crude Situation Normal, Don't Panic-Buy: Centre On Middle East Crisis

The government today shared a stable picture of India's energy situation amid the US-Iran war, which has affected oil shipping. More than 70 per cent of India's crude imports are now moving through routes outside the Strait of Hormuz. The crude situation is "normal," a top official said.

At an inter-ministerial briefing on Thursday, Sujata Sharma, Joint Secretary (Marketing and Oil Refinery) at the Ministry of Petroleum and Natural Gas, offered what the government is calling a stable picture.

India is the world's fourth-largest refiner, Sharma said, and cited that fact as the government's primary cushion.

"This is giving us comfort for making availability of products," she said.

LPG production has been ramped up by 28 per cent.

India imports 60 per cent of its LPG - and 90 per cent of that import volume ordinarily comes via the Strait of Hormuz. With the strait closed, the government is securing domestic supply while simultaneously asking people not to panic-buy.

Bookings have spiked due to panic-buying, officials said.

Sharma said no dry-out has been reported. The government delivers 50 lakh cylinders daily through thousands of distributors across the country.

For commercial LPG, hospitals and educational institutions have been prioritised. Some additional commercial cylinders will be released into the market. State governments have been asked to submit a list of priority sectors requiring gas.

The government will also release 48,000 kilolitres of kerosene to states against a quarterly allocation of one lakh kilolitres. The Ministry of Coal separately issued a letter directing Coal India to ensure higher coal releases to states, in an acknowledgment that energy substitution is now part of the calculus.

Senior officials of oil marketing companies (OMCs) are in direct contact with state administrations and have been asked to coordinate distribution.