Petrol, diesel up ₹3: Puri flags 60-day reserves

What triggered the fresh fuel-supply concerns

A recent ₹3 hike in petrol and diesel prices has sparked questions about whether India is facing a fuel availability issue. The concern has been amplified by geopolitical tensions in West Asia and stress at key shipping corridors such as the Strait of Hormuz. The government has linked the price revision to global crude oil fluctuations and supply disruptions tied to the ongoing conflict in the region. In response, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has publicly pushed back on the shortage narrative. He said there is no supply-side problem and urged people not to panic. The minister’s comments were made in the context of rising public speculation and reports of anxiety about future availability.

Puri’s core message: no shortage, supply management stable

Puri said there is “no problem on the supply management side” and “no shortage anywhere” in the country. He also described talk of a major lockdown as “completely false” and a rumour. The minister said that attempts to spread rumours and encourage hoarding did not result in shortages, and that availability remained intact. Separately, he reiterated in Parliament that there is no shortage of petrol, diesel, kerosene, ATF or fuel oil, and that availability is fully assured. The central point of the government’s response is that inventories and supply chains are functioning smoothly. This is positioned as a reassurance amid heightened sensitivity to global energy shocks. The messaging also seeks to separate price action from claims of physical scarcity.

Buffer stocks: crude, LNG and LPG days of cover

Puri said India holds sufficient reserves, including 60 days of crude oil, 60 days of LNG, and 45 days of LPG supply. He described 60 days of crude as “the maximum we need,” implying that current stock levels match the targeted buffer. The same 60-day figure was reiterated for LNG, and 45 days for LPG. The government has framed these buffers as a shield against external disruptions, including shipping stress near the Strait of Hormuz. These stock levels are presented as the factual basis for concluding there is no domestic shortage. The minister repeatedly used the phrase “no supply side problems” to underline that inventories are not the constraint.

LPG production ramp-up: from about 35,000 to 54,000 tonnes

Alongside inventory buffers, the minister highlighted an increase in domestic LPG production. He said daily output has been raised to about 54,000 tonnes from around 35,000 tonnes earlier. Another statement cited a similar rise from nearly 36 thousand metric tonnes per day to around 54 thousand metric tonnes per day. The intent of the production ramp-up, according to the minister, is to ensure uninterrupted supply amid external volatility and rising consumption. He described the situation as having been managed “with a sense of responsibility” and said there was “no dry out anywhere.” The government has used the output increase to support its claim that supply stability has improved despite geopolitical uncertainty.

Why prices moved: global crude swings and maritime disruptions

The government has attributed the recent price revision to global crude oil fluctuations and supply disruptions connected to the West Asia conflict. It also flagged strain at major maritime routes, including the Strait of Hormuz, as a pressure point for energy logistics. Puri said India remained stable even as several countries faced shortages and sharper price shocks. He also noted that global crude oil prices had “almost doubled,” putting pressure on energy systems internationally. In this context, the government’s explanation is that domestic prices reflect external cost pressures rather than a local supply breakdown. The minister questioned the panic around availability, arguing that supply management remains stable.

Elections and pricing: minister rejects a political linkage

Puri dismissed suggestions that fuel price revisions were postponed due to recently concluded state elections. He said, “prices and elections are unrelated,” while also indicating that prices could rise. He added that the government had not raised prices for the last four years. In a separate account, he said fuel prices have largely remained unchanged since 2022. The consistent element across these statements is that the government is presenting pricing decisions as policy and cost driven, not election timed. At the same time, the minister did not rule out future increases.

Oil marketing companies’ losses: ₹1,000 crore per day

A key financial detail raised by Puri is the reported strain on oil marketing companies (OMCs). He said OMCs are losing ₹1,000 crore per day. This figure has been cited in the context of explaining why fuel prices could rise. Moneycontrol had earlier reported that state-run fuel retailers may raise petrol and diesel prices in the coming days to offset mounting losses. The minister’s reference to daily losses helps connect pricing pressure to the downstream retail segment. It also clarifies why the government is discussing pricing even while emphasising that there is no physical shortage.

Reach of the fuel system: retail outlets and LPG households

Puri said India has ensured fuel availability at over one lakh retail outlets. He also referred to uninterrupted LPG supply to 33.5 crore households. These metrics are used to show operational continuity, especially during periods of global volatility. The government’s argument is that supply chains are working across categories, including petrol, diesel and LPG. The broader message is that the system is functioning as usual even amid international shipping and crude-price stress.

Key facts at a glance

What to watch next

The government has reiterated that supply is stable, but the discussion has shifted toward whether pricing changes are needed to address OMC losses. Puri has said prices could rise and that pricing is not linked to elections. Separately, reports have suggested state-run retailers may raise prices in the coming days to offset losses. For consumers and investors tracking the energy value chain, the immediate focus remains on price revisions, the evolution of West Asia-related disruptions, and any further government communication on supply buffers and retail pricing.

Conclusion

Hardeep Singh Puri has sought to calm fuel-shortage fears after a ₹3 increase in petrol and diesel prices, citing 60 days of crude and LNG stocks and 45 days of LPG reserves. He also pointed to higher LPG output of about 54,000 tonnes per day and said supply chains are stable nationwide. While the minister rejected rumours of shortages and a “lockdown,” he acknowledged pricing pressures, citing ₹1,000 crore per day losses at OMCs and indicating that fuel prices could rise. The next signal for markets and consumers is whether state-run retailers move on price in the near term, as earlier reported, and how global crude and shipping conditions evolve.