India fuel stocks: 60-day buffer, no rationing in 2026

Government’s core message: supplies are adequate

India has sufficient fuel inventories and there is no plan to ration petrol, diesel or LPG despite disruptions in global energy markets, Oil Secretary Neeraj Mittal said on Monday, according to PTI. Speaking at the CII Annual Business Summit, Mittal said the country has maintained adequate fuel and LPG stocks during the ongoing West Asia crisis and diversified imports to manage supply risks. He also urged the public not to panic, repeating that rationing is not in place. The remarks came as geopolitical tensions and shipping constraints continued to unsettle energy flows.

What the Oil Secretary said on stocks and rationing

Mittal said India has maintained around 60 days of fuel inventories and nearly 45 days of LPG stocks over the past 67 days of market disruption. He said the government has been actively managing supply disruptions linked to geopolitical tensions and shipping constraints. The official line, as cited by PTI, was direct: there is “no need to panic”, supplies are sufficient, and rationing “is not going to happen.” The emphasis was on continuity of supply and avoiding panic-driven purchases.

Ministerial meeting and PIB assurance to citizens

A day after Prime Minister Narendra Modi urged fuel conservation, reduced imports and restraint in gold purchases amid pressure on foreign exchange reserves from rising global energy prices, the government held a formal ministerial meeting on the West Asia crisis. The meeting stated there is no shortage of any petroleum product in the country. A Press Information Bureau (PIB) release said India has 60 days of crude oil and natural gas stocks, and 45 days of LPG rolling stock. It added that there is “no reason for anxiety” and no reason for citizens to rush to retail outlets. Foreign exchange reserves were cited at $103 billion and described as comfortable.

How India is managing disruptions in global energy markets

Mittal said the government has secured additional energy cargoes and increased procurement from alternative suppliers. India has also diversified import sources to manage supply risks during the West Asia crisis. The government, he said, absorbed part of the global price shock through excise duty cuts on petrol and diesel. In parallel, India has accelerated efforts to expand domestic oil exploration, strategic reserves and alternative fuel programmes including green hydrogen, ethanol blending and sustainable aviation fuel.

Pump prices unchanged, but OMC losses highlighted

Even as international crude prices rose after the West Asia conflict, petrol and diesel have continued to be sold at rates unchanged for nearly two years, according to the report. A top government source said the default mode is to keep prices and supplies stable. However, the government also acknowledged the cost of stability. It noted that public-sector oil marketing companies (OMCs) are absorbing losses of nearly ₹1,000 crore a day to keep pump prices from rising.

Under-recoveries and global price swings

The official note cited under-recoveries running to nearly ₹2 lakh crore in the first quarter of the current fiscal year, reflecting the stress on fuel retailers when prices are held steady despite global spikes. The government compared India’s experience with other countries, saying that in many nations prices rose by 30% to 70% during the same volatile period. The message from officials was that the burden of global prices was not passed to Indian consumers during this phase.

Refining capacity, retail network, and secured crude for 60 days

In subsequent government statements responding to shortage claims, the Ministry of Petroleum and Natural Gas said India currently has around 60 days of stock cover, backed by a total reserve capacity of 74 days. It said there is no shortage of petrol, diesel or LPG anywhere in the country, and all retail outlets (over one lakh) are fully operational with no rationing in place. The ministry also said all refineries are operating at over 100% utilisation and crude supplies for the next 60 days have already been secured. Officials added that India’s position as the world’s fourth-largest refiner and fifth-largest exporter of petroleum products supports domestic availability, even as several countries face rationing.

LPG steps: higher output and secured cargoes

Union minister Hardeep Singh Puri said India maintained stable energy supplies despite disruption linked to the closure of the Strait of Hormuz. He said the government has been monitoring supplies of crude oil, LNG, LPG, petrol, diesel and aviation fuel daily for over 60 days. The report said domestic LPG production was ramped up by 60%, from 36,000 metric tonnes to 54,000 metric tonnes per day, while consumption was optimised by shifting industrial users from LPG to piped natural gas so household demand remained unaffected. Separately, the ministry said 800,000 tonnes of LPG cargoes have been secured and one full month of supply is firmly arranged.

Strategic reserves: the 90-day debate and “creative ways”

Mittal said India consumes about 5 million barrels a day and argued that a 90-day reserve would mean putting a lot of money “in a box” without using it. He added that the government is exploring “creative ways” to expand strategic reserves while generating returns from stored crude. Another government update referenced accelerating the Strategic Petroleum Reserve (SPR) project in Odisha to add 4 million metric tonnes of capacity.

Key facts snapshot

What to watch next

The government’s repeated guidance across statements is to rely on official communication and avoid panic buying. Operationally, the key near-term marker is whether crude procurement remains secured beyond the stated 60-day window while global shipping constraints continue. Another watch point is how long OMCs can absorb reported daily losses and quarterly under-recoveries while keeping retail prices unchanged. Any further announcements on expanding strategic reserves, including the Odisha SPR plan, are also likely to remain in focus.