Govt Says No Crude or Fuel Shortage; Has Stock to Cover 2 Months

While dismissing rumours of fuel shortage that have triggered panic buying in some parts of the country, the government on Thursday said India has adequate fuel supplies and sufficient crude stocks to cover around two months’ consumption.

The clarification comes after reports of panic buying in some parts of the country following rumours of fuel shortage and potential price hikes amid the war in West Asia and tensions around the Strait of Hormuz, a key global shipping route for crude oil.

“All 1 lakh-plus retail fuel outlets across the country are open and dispensing fuel without interruption. Not a single outlet has been asked to ration supply,” the Ministry of Petroleum & Natural Gas said in a statement.

The government noted that India continues to receive crude supplies from a diversified base of more than 41 suppliers worldwide, which has helped offset any disruption linked to developments in the region.

India depends on imports to meet over 88% of its crude oil needs. India has ramped up oil imports from non-West Asian countries, particularly Russia, to mitigate the impact of the Gulf supply hit.

“High volumes available in international markets, especially from the western hemisphere, have more than compensated for any disruption,” the statement said.

The government rejected claims that fuel inventories were running critically low. “Misinformation has been circulating, including through some articles and social media videos, suggesting that only 6 days of stocks are there in the country. India has 74 days of total reserve capacity and actual stock cover is around 60 days right now,” the statement said.

The Oil Ministry also noted that domestic refineries are operating at elevated utilisation levels to maintain supply stability.

“Every Indian refinery is running at over 100% utilisation. Crude oil supplies for the next 60 days have already been tied up by Indian oil companies. There is no supply gap,” the government said.

The government reiterated that India remains adequately supplied with fuel despite global volatility. “Nearly two months of steady supply is available for every Indian citizen regardless of what happens globally. India is completely secure for the next many months,” it added.

The ongoing conflict in West Asia has pushed up international crude oil and fuel prices, increasing cost pressures on refiners and fuel retailers. Prices of premium petrol and bulk diesel used by industrial consumers were raised last week, while retail prices of regular petrol and diesel at state-owned OMCs remain unchanged.

The price of premium 95-octane petrol was hiked by Rs 2 per litre in Delhi to Rs 101.89 per litre, with corresponding changes in other parts of the country. The price of industrial diesel went up by around Rs 22 per litre to Rs 109.59 in Delhi, from Rs 87.67 per litre.