New Delhi, May 12 -- India has sufficient fuel reserves for about two months and faces no immediate supply concerns despite disruptions in global energy flows, Petroleum Minister Hardeep Singh Puri said on Tuesday. However, he cautioned that prolonged high crude prices combined with unchanged retail fuel rates could inflict heavy financial losses on state-run oil companies.
Speaking at the Confederation of Indian Industry's annual summit, Puri said the country entered the current geopolitical crisis with strong inventories and has since strengthened domestic production. "We have no supply-side problems," he said, noting that LPG output has increased to 54,000 tonnes per day from around 36,000 tonnes earlier.
Even as supplies remain stable, financial pressures are mounting on public sector oil marketing companies, including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. These firms have continued selling petrol, diesel and cooking gas below cost since the outbreak of conflict in West Asia about 10 weeks ago.
Puri said the companies are losing around Rs 1,000 crore daily, with cumulative under-recoveries nearing Rs 1.98 lakh crore for the current quarter. Actual losses are estimated at about Rs 1 lakh crore, a figure he said could erase their annual profits. "How long will the oil companies be able to take it. frankly, that's something that worries me," he said.
Retail fuel prices have not been revised for four years, even as global crude prices have surged by about 50 per cent. Petrol is currently priced at Rs 94.77 per litre and diesel at Rs 87.67 per litre, while LPG cylinder prices, though increased by Rs 60 in March, remain below cost. Oil firms are losing roughly Rs 14 per litre on petrol, Rs 42 per litre on diesel and Rs 674 per LPG cylinder.
Despite these challenges, India has maintained uninterrupted fuel supply across the country, avoiding the shortages and price spikes seen in several other nations. "There are no shortages anywhere. Every petrol pump in the country has had petrol and diesel. LPG supply is more than enough," Puri said.
India currently holds about 60 days of crude oil and LNG supplies and around 45 days of LPG reserves. Officials are monitoring the situation closely through continuous reviews of supply chains and refining operations.
The minister also addressed concerns around calls for fuel conservation made by Narendra Modi, clarifying that they do not signal any imminent restrictions. "It's not that any lockdown is going to happen tomorrow," Puri said, adding that there is "absolutely no cause for anxiety".
He described the Prime Minister's appeal as a forward-looking approach aimed at reducing long-term vulnerabilities. "There are certain activities which we can curtail," he said, referring to voluntary moderation in consumption.
Puri also urged households and industries to shift from LPG to piped natural gas where possible, citing expanding infrastructure and improved availability. "We have no shortage of pipe gas. It is cleaner, cheaper and helps us scale up the energy transition," he said.
The crisis has prompted the government to reassess its strategic energy storage policies. Puri said India would need to build larger reserves in the future as global supply chains remain uncertain. "The experience since February 2026 means you have to rethink everything," he said.
India, which imports about 88 per cent of its crude oil and previously relied heavily on shipments passing through the Strait of Hormuz, has diversified sourcing to ensure uninterrupted supply. Nearly 20 per cent of global energy flows transit through the strait.
Fuel demand has remained steady, with petrol consumption rising about 6 per cent. LPG demand has eased to around 75,000 tonnes per day from nearly 90,000 tonnes earlier, partly due to seasonal trends.
Looking ahead, India plans to expand its refining capacity to 320 million metric tonnes annually by 2030, up from around 260 million tonnes currently. The government is also pushing for increased domestic oil and gas exploration through policy changes and expanded licensing rounds.
Puri said India has managed the situation effectively so far and remains confident of handling future challenges, while acknowledging the need for careful management of consumption and fiscal pressures.
Published by HT Digital Content Services with permission from Millennium Post.