New Delhi: India is weighing a range of contingency options including restricting petrol and diesel exports, increasing Russian crude imports, and introducing demand-management measures such as LPG rationing to address potential fuel shortages if traffic through the Strait of Hormuz remains disrupted for weeks, said people familiar with ongoing discussions between the government and industry.
Oil and gas prices surged on Monday, with Brent crude futures rising nearly 10% to $80 a barrel and European gas jumping more than 40%, as the widening West Asia conflict and attacks on energy facilities including Saudi Arabia's Ras Tanura refinery and a Qatari LNG plant triggered production shutdowns.Also Read: India unlikely to see petrol, diesel price hike despite global oil prices spiking to $80Tanker movement through the Strait remained sparse for the second day on Monday, heightening concerns over supply continuity and prompting officials and refiners to review fallback options. Industry executives and oil ministry officials are examining supply and demand management measures.
“We are continuously monitoring the evolving situation, and all necessary steps will be taken in order to ensure availability and affordability of major petroleum products in the country,” the oil ministry said on X after a review by oil minister Hardeep Puri.Also Read: Trump’s Iran strike risks wider West Asia war as oil prices surge, diplomacy collapses
A key step being considered by the Indian government is curbing exports of petrol and diesel to boost domestic availability in an emergency, the people said.
India exports about a third of its petrol, a quarter of its diesel, and about half of its aviation turbine fuel (ATF) output. Refiners could also redirect surplus ATF into other product streams if required, they said. The most immediate vulnerability is LPG, where India depends on imports for nearly two-thirds of consumption and maintains modest inventories. About 85-90% LPG imports come from the Gulf.
TWO WEEKS COVER
Industry estimates suggest that stocks—including onshore inventories and cargoes that have already crossed Hormuz—may cover less than two weeks if supplies are interrupted. In response, state-run refiners Indian Oil, HPCL, and BPCL have begun increasing LPG output at select petrochemical integrated refineries.
Targeted demand-management steps, including rationing LPG for customers with access to alternative fuels, particularly in rural areas, are also being discussed, people said.
India’s crude reserves can cover about 17–18 days of consumption, refined fuels such as petrol and diesel about 20–21 days, and LNG about 10–12 days. In the absence of fresh arrivals through Hormuz, these buffers would steadily decline. In recent months, the Gulf accounted for about half of India’s crude and LNG imports.
Boosting imports of Russian oil to compensate for the Gulf supply loss is also being considered, the people said. Significant quantities of Russian oil remain on the water and could be redirected relatively quickly.
If global supplies tighten and prices rise sharply, Washington’s stance could soften, letting Indian refiners take more Russian oil, people said.
Oil and gas prices surged on Monday, with Brent crude futures rising nearly 10% to $80 a barrel and European gas jumping more than 40%, as the widening West Asia conflict and attacks on energy facilities including Saudi Arabia's Ras Tanura refinery and a Qatari LNG plant triggered production shutdowns.Also Read: India unlikely to see petrol, diesel price hike despite global oil prices spiking to $80Tanker movement through the Strait remained sparse for the second day on Monday, heightening concerns over supply continuity and prompting officials and refiners to review fallback options. Industry executives and oil ministry officials are examining supply and demand management measures.
LPG Most Vulnerable
However, many believe Iran may struggle to sustain military momentum and any disruption to transit through the Strait could normalise rapidly, said the people cited above. US president Donald Trump has, however, said the conflict in West Asia could last as much as four weeks.“We are continuously monitoring the evolving situation, and all necessary steps will be taken in order to ensure availability and affordability of major petroleum products in the country,” the oil ministry said on X after a review by oil minister Hardeep Puri.Also Read: Trump’s Iran strike risks wider West Asia war as oil prices surge, diplomacy collapses
A key step being considered by the Indian government is curbing exports of petrol and diesel to boost domestic availability in an emergency, the people said.
India exports about a third of its petrol, a quarter of its diesel, and about half of its aviation turbine fuel (ATF) output. Refiners could also redirect surplus ATF into other product streams if required, they said. The most immediate vulnerability is LPG, where India depends on imports for nearly two-thirds of consumption and maintains modest inventories. About 85-90% LPG imports come from the Gulf.
TWO WEEKS COVER
Industry estimates suggest that stocks—including onshore inventories and cargoes that have already crossed Hormuz—may cover less than two weeks if supplies are interrupted. In response, state-run refiners Indian Oil, HPCL, and BPCL have begun increasing LPG output at select petrochemical integrated refineries.
Targeted demand-management steps, including rationing LPG for customers with access to alternative fuels, particularly in rural areas, are also being discussed, people said.
India’s crude reserves can cover about 17–18 days of consumption, refined fuels such as petrol and diesel about 20–21 days, and LNG about 10–12 days. In the absence of fresh arrivals through Hormuz, these buffers would steadily decline. In recent months, the Gulf accounted for about half of India’s crude and LNG imports.
Boosting imports of Russian oil to compensate for the Gulf supply loss is also being considered, the people said. Significant quantities of Russian oil remain on the water and could be redirected relatively quickly.
If global supplies tighten and prices rise sharply, Washington’s stance could soften, letting Indian refiners take more Russian oil, people said.
