India Has Enough Fuel, Refineries Asked To Push Up LPG Production: Sources

Concern over a possible fuel crisis growing amid the war in Iran, the Centre today reiterated that India has enough stocks, and directed all LPG refineries of the country -- public and private -- to increase production. 

"There is no shortage of energy in India and there is no cause of worry for our energy consumers... Our priority is to ensure availability of affordable and sustainable fuel for our citizens, and we are doing it comfortably," oil minister Hardeep Puri said. 

The Indian Oil Corporation, too, insisted tthere is no shortage.  In a post on X, formerly Twitter, Indian Oil said: "Reports on social media suggesting a shortage of petrol and diesel are baseless. India has sufficient fuel stocks... Citizens are requested not to panic or crowd fuel stations and to rely only on official sources for accurate information."

There has been concern about a surge in oil prices after Iran blocked the Strait of Hormuz, even though Iran's Revolutionary Guards said yesterday that the Strait of Hormuz will now remain closed only to vessels from the United States, Israel, Europe and their Western allies. .

Read: "Fuel Prices Won't Rise, Don't Panic": Sources Say India To Buy Russian Oil

The concern spiked following Qatar energy minister's comment that the war will push the world into a massive fuel crisis.

"Everybody that has not called for force majeure we expect will do so in the next few days if this continues. All exporters in the Gulf region will have to call force majeure... If they don't, they are at some point going to pay the liability for that legally, and that's their choice," said Qatar's Energy Minister Saad al-Kaabi.

Amid the confusion, the Opposition targeted the government. In a post on X, Congress's Gaurav Gogoi said, "The Centre has sacrificed the energy autonomy to the Americans. The government has to answer  the people. PM Modi has prioritised protecting his interest ahead of the country's interests".

The Centre meanwhile, has asked all LPG refineries of the country -- public and private -- to increase production, sources said. There are sufficient stocks of crude oil and petroleum products such as petrol, diesel, and LPG. The oil companies are also importing from countries outside the Gulf region to cover the disruption in supplies due to the Iran war.

Read: India Gets 30-Day Waiver From US To Buy Russian Oil Amid Iran War

"Today, we have more energy sources available than the fuel currently stranded in the Strait of Hormuz. Our position in terms of crude oil, oil products, and LPG is very good. We are in a good position based on current reserves," said government sources.

"We will increase our supplies from other nations and make up for the shortfall in supplies from the Strait of Hormuz," a source added.

Read: Iran War Pushes India's Crude Oil Basket To $85/barrel, A 19-month High

The looming energy crisis has underscored the need for imports from Russia. 

"We have been purchasing crude oil from Russia since 2022," sources said. "In 2022, we were importing 0.2 per cent of our total imports from Russia. In February, we imported 20 per cent of our total crude oil from Russia, which amounted to 1.04 million barrels per day," an official said.

When it comes to gas, though, India is in a "good position," sources said. 

Indian public sector oil companies, they said,  have signed a one-year contract in November 2025 to import approximately 2.2 metric tons of LPG a year from the US Gulf Coast in 2026. The imports, they said, started in January.