India Has Sufficient Stocks of Oil, Petroleum Products Amid Iran War

KEY TAKEAWAYS:

India says it has sufficient crude oil, petrol, diesel and LPG stocks despite the Iran war.
The government plans to increase imports from regions outside the Gulf to offset supply disruptions.
Refineries have been directed to boost LPG production to protect domestic cooking gas supply.

New Delhi: India has reassured markets that India oil stocks amid the Iran war remain stable, with the country holding adequate reserves of crude oil and petroleum products. Officials say supplies of petrol, diesel and liquefied petroleum gas (LPG) are currently sufficient despite rising geopolitical tensions in West Asia.

The announcement comes as the conflict involving Iran threatens energy shipping routes, especially through the Strait of Hormuz, a corridor that carries a significant share of global oil trade.

Government officials say India is “in a comfortable position” with current fuel stocks and is already preparing alternative sourcing strategies to avoid supply disruptions.

India Oil Stocks Iran War: Government Assures Supply Stability

Officials from the energy sector say India currently has adequate inventories of crude oil and refined fuels. These include petrol, diesel and LPG stocks needed for domestic consumption.

The government has also directed oil companies to increase supplies from regions outside the Gulf to compensate for any shortages caused by disruptions in the Strait of Hormuz.

The data suggests India’s diversified energy sourcing strategy is helping cushion the impact of geopolitical tensions. Even if tanker movement slows in the Gulf, additional imports from other suppliers could help stabilize supply chains.

Russia’s Role Growing in India’s Crude Oil Imports

India’s energy import pattern has shifted significantly since the start of the Russia–Ukraine War.

Officials noted that crude imports from Russia have increased sharply in recent years.

In 2022, Russia accounted for just 0.2 percent of India’s crude imports. By February this year, that share had climbed to about 20 percent, with India importing roughly 1.04 million barrels per day from Russian suppliers.

Discounted Russian crude has played a key role in helping India maintain stable fuel prices despite volatility in global markets.

Government Directs Refineries to Boost LPG Production

To avoid any shortage of cooking gas, the government has instructed refiners to maximise LPG output.

The directive from the Ministry of Petroleum and Natural Gas asks refiners to prioritise gases such as propane and butane for LPG production to support household demand.

Officials also clarified that the Mangalore Refinery and Petrochemicals Limited remains operational and well stocked, dismissing reports of a shutdown.

Additionally, petrochemical resources may be redirected for domestic use if required to support consumption demand.

Why the Strait of Hormuz Crisis Matters for India

The Strait of Hormuz is one of the world’s most critical energy chokepoints. Roughly 20 percent of global oil supply passes through the route, making disruptions there a major concern for global markets.

Also Read | Congress Targets Government Over India Russian Oil Imports Row

For India, the stakes are high because the country is among the world’s largest crude importers.

The government’s strategy focuses on three immediate priorities:

Diversifying crude import sources
Maintaining strategic reserves and fuel inventories
Protecting LPG supply for households

What the market is missing is that India’s ability to shift imports and increase domestic refining output can provide a short term buffer against geopolitical shocks.

However, if the Iran conflict continues to disrupt shipping routes for a prolonged period, global oil prices could remain volatile, forcing large importers like India to further adjust their energy sourcing strategies.

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