India’s diversified energy sourcing strategy is helping cushion the country from disruptions arising from the evolving situation in West Asia and concerns over shipments through the Strait of Hormuz. Officials said India now imports crude oil from around 40 countries, and about 70 per cent of its crude imports come through routes outside the Strait of Hormuz, compared with around 55 per cent earlier. India’s daily crude oil consumption stands at about 55 lakh barrels, and the volumes currently secured exceed what would normally have arrived through the Strait of Hormuz during this period.
The details were shared during an inter-ministerial briefing organised at the National Media Centre on Wednesday (March 11). Senior officers from the Ministry of Petroleum and Natural Gas, Ministry of External Affairs, Ministry of Ports, Shipping and Waterways, and Ministry of Information and Broadcasting briefed the media on preparedness measures related to energy supply, maritime safety, the welfare of Indian nationals abroad, and the communication steps being taken by the Government of India.
Crude oil supply remains secure
Officials said India’s crude oil supply position remains stable despite global uncertainties. Two additional crude cargoes are already on their way to the country and are expected to arrive in the coming days, further strengthening the supply position.
Refineries across India are currently operating at very high capacity utilisation levels, with some units functioning above 100 per cent capacity utilisation, ensuring uninterrupted production of petroleum products.
Natural gas supplies adjusted
India’s total natural gas consumption is about 189 million metric standard cubic metres per day (MMSCMD), of which 97.5 MMSCMD is produced domestically. However, 47.4 MMSCMD of supply has been affected due to force majeure conditions linked to the regional situation.
Officials said procurement through alternative suppliers and routes is underway to offset the disruption. Gas companies have also secured LNG cargoes from new sources, and two LNG cargoes are currently on their way to India.
To manage supplies and protect priority sectors, the government issued a Natural Gas Control Order on 9 March 2026 under the Essential Commodities Act.
Under the new allocation framework, domestic piped natural gas (PNG) supply and CNG for vehicles will continue to receive 100 per cent supply with no cuts. Industrial consumers such as tea industries and manufacturing units connected to the gas grid will receive around 80 per cent of their previous six-month average supply, while fertiliser plants will receive about 70 per cent supply. Refineries and petrochemical units will take a 35 per cent reduction so that higher priority sectors remain protected.
LPG imports vulnerable due to Strait of Hormuz
Officials highlighted that the Strait of Hormuz remains critical for LPG imports. India imports about 60 per cent of its LPG consumption, and nearly 90 per cent of these imports normally pass through the Strait of Hormuz, making the route crucial for domestic cooking fuel supplies.
To address the situation, the government issued an order on 8 March 2026 directing refineries and petrochemical complexes to maximise LPG production by diverting propane, butane, propylene and butenes streams to the LPG pool. As a result, domestic LPG production has increased by about 25 per cent, with the entire domestic output now being directed towards household consumers.
For non-domestic LPG supply, priority is being given to essential sectors such as hospitals and educational institutions. A three-member committee of Executive Directors from IOCL, HPCL and BPCL has been constituted to review allocations to restaurants, hotels and other commercial users and ensure fair and transparent distribution of available LPG supplies.
Pricing and consumer supply measures
Officials said the current price of a domestic LPG cylinder in Delhi stands at ₹913 following a recent ₹60 increase. However, beneficiaries under the Pradhan Mantri Ujjwala Yojana continue to receive cylinders at ₹613 per cylinder.
For PMUY households, the recent increase translates to less than 80 paise per day, officials said. Despite the Saudi Contract Price rising by about 41 per cent since July 2023, the PMUY cylinder price has fallen by around 32 per cent during the same period due to government support.
The government has also approved ₹30,000 crore as compensation for oil marketing companies to offset LPG under-recoveries.
Measures against panic booking
Officials noted that field-level feedback indicates some panic booking and hoarding behaviour, but clarified that the normal delivery cycle for domestic LPG remains about 2.5 days, and consumers have been advised not to rush-book cylinders.
The Delivery Authentication Code (DAC) system is being expanded to cover about 90 per cent of consumers to prevent diversion at the distributor level. As a temporary demand-management measure, the minimum gap between LPG bookings has been increased from 21 days to 25 days.
Oil marketing companies and enforcement teams are coordinating at the field level to clear distributor backlogs and ensure smooth deliveries. Officials reiterated that the government is continuously monitoring the global situation and taking necessary steps to ensure uninterrupted fuel supplies while protecting households and priority sectors
