No Fuel Crisis: India Assures Steady Petrol & Diesel Supply

New Delhi, March 30, 2026: As global energy markets face volatility due to escalating geopolitical tensions in West Asia, the Government of India has issued a comprehensive assurance to the public: there is no shortage of petrol, diesel, or LPG in the country. In a series of statements released in late March 2026, the Ministry of Petroleum and Natural Gas (MoPNG) dismissed rumors of a fuel crisis as “deliberate misinformation” and confirmed that India’s energy supply chain remains robust and fully operational.

State of National Fuel Stocks

The government has provided a transparent breakdown of India’s current energy reserves to quell public anxiety and prevent panic buying at retail outlets.

• 60-Day Crude & Product Cover: India currently holds approximately 60 days of actual stock cover, which includes crude oil, finished product stocks, and dedicated strategic underground storage.
• Total Capacity: The country’s total reserve capacity stands at 74 days, ensuring nearly two and a half months of steady supply regardless of global disruptions.
• Refinery Performance: Domestic refineries are currently operating at over 100% utilization, with petroleum companies successfully securing crude oil supplies for the next 60 days from more than 41 global suppliers.

Strategic Interventions to Stabilize Prices

To shield Indian consumers from the “oil shock” caused by the conflict in West Asia, the central government has implemented significant fiscal measures:

1. Excise Duty Cuts: In a major relief move on March 27, 2026, the government slashed excise duty on petrol and diesel by ₹10 per litre. This brought the duty on petrol down to ₹3 and reduced the duty on diesel to zero.
2. Export Levies: To prioritize domestic availability, the government imposed an export tax of ₹21.5 per litre on diesel and ₹29.5 per litre on Aviation Turbine Fuel (ATF). This ensures that refined fuel produced in India stays within the country rather than being diverted to higher-priced international markets.
3. Price Stability: Despite global crude prices touching $119 per barrel, retail prices at the pump have remained largely unchanged, with Oil Marketing Companies (OMCs) absorbing fluctuations to maintain economic stability.

LPG and Natural Gas Security

While the conflict in West Asia initially impacted LPG imports, the government has ramped up domestic production by 40%, bringing daily output to 50,000 Metric Tonnes.

• Supply Security: Over 800 Thousand Metric Tonnes of LPG are currently en route from the US, Russia, and Australia.
• Daily Deliveries: OMCs are delivering over 55 lakh cylinders daily, and the standard booking-to-delivery cycle remains at approximately 2.5 days.
• Transition to PNG: The government is fast-tracking Piped Natural Gas (PNG) infrastructure. In March 2026 alone, over 2.9 lakh new connections were gasified to reduce the long-term reliance on imported LPG.

Official Advisory to Citizens

The Ministry has urged the public to rely only on verified information and avoid “panic ordering.” Authorities noted that recent long queues at petrol pumps in cities like Hyderabad and Bengaluru were driven by social media rumors rather than any actual dry-out at fuel depots.