India Secures 60 Days of Oil, Dismisses LPG Shortage Claims

Key Takeaways

• India confirms 60 days of crude oil stocks and 60 days of future procurement.
• Government states domestic LPG production now exceeds import needs significantly.
• Oil stocks have risen from 50 to 60 days since the West Asia conflict began.
• Demand for fuel has surged 15% in two days, with sales spikes of 50%.
• Authorities warn against fake news regarding fuel crisis rumors on social media.

In a decisive move to quell rising speculation regarding the nation's energy security, the Ministry of Petroleum and Natural Gas (MoPNG) issued a comprehensive statement on Thursday, March 26, 2026. The ministry explicitly addressed escalating tensions in West Asia by confirming that India currently maintains adequate reserves. The government asserted that the country has secured supplies sufficient for the next 60 days regarding crude oil and has arranged a full month of liquefied petroleum gas (LPG) imports, with continuous procurement ongoing.

The announcement comes as a direct response to growing public anxiety and online speculation surrounding potential supply disruptions. Vikas Kaushal, the chairman and managing director of Hindustan Petroleum, highlighted a sudden and sharp increase in consumer demand earlier that day. Kaushal noted on social media that sales of petrol and diesel had jumped by over 15% across the nation in the last 48 hours, with specific locations witnessing spikes of more than 50% compared to average daily figures. Despite this surge, officials maintained that supply chains remain robust and outlets are fully stocked, aiming to counter fears of a looming fuel crisis.

Government Clarifies Reserve Capacities

The official statement provided granular details on the current state of India energy stocks, painting a picture of resilience rather than vulnerability. According to the ministry, Indian oil companies have successfully secured future supplies that will cover the next 60 days. Furthermore, the country currently holds physical stockpiles of crude, diesel, and petrol sufficient for an additional 60 days. This figure represents a strategic increase from the initial 50 days of total stocks that the government reported at the onset of the conflict in West Asia.

When viewed cumulatively, the total reserve storage capacity for the nation now stands at 74 days, encompassing crude oil, petrol, and diesel. The Ministry of Petroleum and Natural Gas emphasized that this robust inventory ensures nearly two months of steady supply for every citizen, regardless of global geopolitical developments. The statement further clarified that procurement for the subsequent two months of crude has already been finalized, rendering the reliance on strategic cavern storage secondary in the current supply scenario. The government declared that India is completely secure for the coming months.

Addressing the specific concerns regarding domestic gas, the ministry dismantled narratives suggesting a LPG shortage. It was clarified that India has shifted its position to produce significantly more LPG than it currently needs to import. Since the issuance of the LPG control order, domestic refinery production has been aggressively ramped up by 40%. This surge has brought daily output to 50 thousand Metric Tonnes (TMT), a figure that now accounts for more than 60% of the country's domestic requirements.

Beyond domestic production, the import pipeline remains active and secure. The government revealed that 800 TMT of LPG cargoes are currently en route to India from diverse international sources, including the United States, Russia, and Australia. The ministry stated that approximately one full month of supply is firmly arranged, with additional procurement deals being finalized on a continuous basis. This multi-pronged approach-combining increased domestic output with secured international imports-underscores the nation's strategy to maintain stability.

The Ministry also took a firm stance against misinformation, warning citizens against sharing misleading social media posts and fabricated claims about shortages. Officials announced that strict action will be taken against individuals responsible for spreading such disinformation. The statement served as both a reassurance to stakeholders and a call for responsible information sharing during these tense geopolitical times.

India Energy Strategy Holds Firm

India solidifies its position by maintaining a 74-day total reserve capacity while domestic production surges to meet over 60% of demand. With future crude procurement secured for the next two months and imports from the US, Russia, and Australia currently underway, the immediate risk of supply interruption appears negligible. However, the observed 15% surge in fuel sales suggests that consumer anxiety could drive a self-fulfilling prophecy if panic-buying continues. If global tensions in West Asia escalate further or if the current rate of increased demand persists without a corresponding drop in panic, the 60-day stockpiles may deplete faster than anticipated, necessitating even more aggressive rationing or emergency import protocols. The long-term stability of these reserves will depend on the duration of the conflict and the consistency of international supply chains remaining open to Indian ports.