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CliQ INDIA > National > India has enough oil reserves for eight weeks despite Iran war, government says petrol and diesel supply remains secure
National

India has enough oil reserves for eight weeks despite Iran war, government says petrol and diesel supply remains secure

cliQ India
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India currently holds over 25 crore barrels of crude oil and petroleum products, enough to meet national demand for nearly eight weeks despite global tensions.

The Indian government has assured that there will be no shortage of petrol, diesel or other petroleum products in the country despite the ongoing conflict involving Iran, the United States and Israel. According to a recent government report, India currently has sufficient oil reserves to meet domestic demand for approximately seven to eight weeks even if global supply disruptions occur.

Officials said India currently holds more than 25 crore barrels of crude oil and refined petroleum products, which is equivalent to nearly 4,000 crore litres of oil inventory. This stockpile is considered strong enough to maintain the country’s fuel supply chain for several weeks even if imports are temporarily disrupted due to geopolitical tensions.

The report aims to address concerns raised after speculation circulated that India had only about 25 days of oil reserves left. Government officials clarified that such claims are inaccurate and emphasized that India’s energy security strategy has significantly strengthened in recent years.

According to the report, India’s current oil inventory ensures that the country’s transportation, power generation and industrial sectors can continue operating smoothly even during temporary disruptions in global supply chains.

Officials highlighted that India’s oil procurement strategy has evolved over the past decade, reducing dependence on a limited number of suppliers. The country now sources crude oil from a much wider network of nations compared to the past.

A decade ago, India imported crude oil from about 27 countries, but today the number has increased to 40 countries. This diversification has strengthened India’s ability to maintain energy supplies even during geopolitical crises.

The government stated that all energy purchases are guided by India’s national interests and economic requirements. Expanding supply partnerships has enabled India to secure alternative sources whenever disruptions occur in major oil-producing regions.

Another key aspect of India’s energy strategy is the reduced dependence on the Strait of Hormuz, one of the world’s most strategically sensitive maritime routes. The narrow passage between Iran and Oman has long been a critical shipping lane for global oil trade and is often considered vulnerable during geopolitical conflicts in West Asia.

Earlier, a large portion of India’s crude oil imports passed through the Strait of Hormuz. However, the government has gradually diversified supply routes and suppliers to reduce risks associated with disruptions in that region.

According to the report, about 40 percent of India’s crude oil imports now pass through the Strait of Hormuz, while the remaining 60 percent arrives through alternative sources and routes. These include imports from Russia, West African nations, the United States and Central Asian countries.

Officials said this diversification strategy has helped reduce India’s exposure to geopolitical risks and strengthened the country’s overall energy security.

In addition, Indian refineries have received temporary regulatory relief from the United States that allows continued purchases of crude oil from certain suppliers. The US Treasury Department has granted Indian refiners a 30-day special license, which will remain valid until April 3.

This temporary arrangement ensures that refineries can continue sourcing crude oil without immediate restrictions, helping stabilize fuel supply in the country during the ongoing crisis.

The government report also highlighted that petrol and diesel prices in India have remained relatively stable over the past four years compared to several other countries.

Data from the Petroleum Planning and Analysis Cell (PPAC) indicates that petrol prices in Delhi declined slightly by about 0.67 percent between February 2022 and February 2026. During the same period, petrol prices increased significantly in several other countries.

For example, petrol prices in Pakistan rose by about 55 percent, while prices in Germany increased by roughly 22 percent during the same period. Officials attribute the stability of fuel prices in India partly to government intervention and the financial role played by public sector oil companies.

According to the report, government-owned oil companies absorbed substantial financial losses in order to protect consumers from rising global energy prices. Public sector firms reportedly absorbed losses of around ₹24,500 crore on petrol and diesel and about ₹40,000 crore on LPG in recent years.

Officials said these measures helped prevent sharp increases in retail fuel prices and ensured that supply remained uninterrupted across the country. The government also claimed that no petrol pump in India has run dry in the past 12 years.

However, the report also noted recent changes in cooking gas prices. The price of domestic LPG cylinders has been increased by ₹60, raising the cost of a standard 14.2-kg cylinder in Delhi to ₹913, compared to the earlier price of ₹853.

The price of commercial LPG cylinders has also been raised. A 19-kg commercial cylinder now costs ₹1,883, reflecting an increase of ₹115. The revised prices came into effect from March 7.

Despite these adjustments, the government maintains that India’s overall energy supply situation remains stable. Officials said that strategic reserves, diversified sourcing, and international coordination are helping ensure that the country remains insulated from major disruptions caused by the ongoing conflict in West Asia.

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