New Delhi: The Ministry of Petroleum and Natural Gas assures continues fuel supply to the Indian consumers amidst the energy crisis compounded by the geopolitical conflict in West Asia. It explained how India has more than sufficient supply of the energy resources that can be catered to the country’s domestic users. As the fourth largest energy refiner, India is one of the major exporter of refined products and also has credible quantities of energy for domestic consumption, the statement from the Ministry further added.
Most importantly, the government release explained how the Public sector Oil Marketing Companies(OMCs) are acting as shock absorbers and cushions against the price hike and imparting oil at comparitively reasonable prices to the domestic users, despite incurring significant losses. This reflects the commitment of the governemnt to render oil at fair prices for the end consumers and ensure energy security of the people at the cost of OMCs profit.
22 refineries & 258 million tonnes of production: A fertile cushion to espouse energy security
The Government of India placed official record and statistics and stated, “in unambiguous terms, that the country has more than adequate supplies of petrol and diesel to meet every domestic need, retail and industrial alike. India is the world’s fourth largest refiner, with an installed capacity of 258.1 million tonnes per annum across 22 operational refineries. Domestic consumption was 243.2 million tonnes in FY 2025-26; petroleum product exports were 61.5 million tonnes in the same year, making India one of the largest exporters of refined products globally. There is no supply issue of any kind”.
“Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, has been in continuous coordination with the Public Sector Oil Marketing Companies, State Governments and industry bodies to ensure uninterrupted supply of Petrol & Diesel to all. The Govt. is constantly reviewing the situation. The picture that emerges from the field is consistent. There is no scarcity of any petroleum product. There is, in pockets, a pattern of arbitrage that is creating the appearance of one”, the statement further reiterated.
Public Sector OMCs acting as shock absorbers: Incurring losses & stabilizing fuel prices
The statement from the Petroleum Ministry further illustrated how the PSU Oil Marketing companies are incurring huge losses to keep the fuel prices stable. The companies are not channelising the comprehensive price rise in the international market to the domestic users, which is fully aligned with the principle of protection of consumer interests. “Mechanism is straightforward. Under the direction of the Government and as a deliberate act of consumer protection during the ongoing West Asia disruption, the Oil Marketing Companies have refrained from passing through the full international price into domestic retail sales”, the statement said.
PSU OMCs are currently absorbing losses of around Rs 550 crore per day on sale of Petrol, diesel and domestic LPG. This cushion is intended for the retail consumers: the households, the two-wheeler commuters, the farmers at the pump. It is not extended to industrial procurement, where pricing tracks international actuals as a matter of standing policy. Industrial consumers who divert their purchases from the industrial channel to the retail pump capture this cushion at the cost of the ordinary citizen. They also concentrate demand at the pump in a way that produces local shortages where none would otherwise exist.
The Government is also taking a serious view of the violations amde by the private oil companies with respect to price mechanisms which is leading to volatility in the oil prices and causing additional burden on the PSUs. Thus the government has warned the industry associations to make their members aware of both the principle and the consequence of violations.
The Government has also requested States/UTs to form special squads and take strict action against malpractice of bulk consumers and hoarders taking supplies meant for retail consumers, black marketing, unauthorised stocking and diversion of petroleum products under relevant provisions of EC Act and Control orders issued thereunder.
The Government statement thus affirms that it remains fully seized of the international situation. India’s refining strength, the disciplined operation of the Public Sector OMCs and the active coordination across Centre, States and industry constitute the working architecture of energy security during this fragile period. It also urges the citizens to rely on official communication and to disregard rumours that mistake an arbitrage problem for a supply problem. It requests the citizens not to panic as India has consistent fuel supply sufficient to consolidate the energy security architecture of the country.
