With global oil markets once again on edge and fuel prices stirring fretfulness in households and boardrooms alike, Union Petroleum and Natural Gas Minister Hardeep Singh Puri moved swiftly on May 12 to quieten concerns, declaring that India has ample reserves of crude oil, liquefied natural gas (LNG), and cooking gas to endure any short-term international disruption.
His assurance was aimed squarely at millions of families and businesses wary that turmoil abroad could translate into higher costs and supply uncertainty at home. As global energy markets flash warning signs, the Indian government projects confidence. Union Petroleum and Natural Gas Minister Hardeep Singh Puri said Tuesday that India has enough crude oil, LNG, and cooking gas to weather the latest turbulence, reassuring consumers even as global oil prices surge and state-run retailers face mounting losses.
“Let us all come together and make every possible effort to conserve energy in our daily lives, so that the economic burden currently weighing upon the nation may be alleviated”
At the CII Annual Business Summit 2026, Puri said India maintains 60 days of crude oil, 60 days of LNG, and 45 days of LPG reserves—a buffer he called fully adequate for uninterrupted nationwide supplies.
“We have 60 days of crude, LNG, and 45 days of LPG,” the minister said, dismissing immediate supply fears. His remarks came at a sensitive time. Global oil prices are climbing, geopolitical uncertainty is high, and Indian oil companies reportedly lose nearly ₹1,000 crore daily to shield households and businesses from rising import costs.
For millions of Indian families dependent on LPG cylinders for cooking and petrol and diesel for transport, the government’s message was straightforward: there is no reason to panic. Despite this reassurance, a tougher question remains: how long can India sustain consumer protection while managing significant financial strain on oil companies?
“Let us all come together and make every possible effort to conserve energy in our daily lives, so that the economic burden currently weighing upon the nation may be alleviated”
FUEL SECURITY IN A VOLATILE WORLD
Energy security has become one of the defining economic challenges of the decade. From wars and sanctions to shipping disruptions and OPEC+production cuts, global crude markets have grown increasingly unpredictable. For India, which imports around 85 per cent of its crude oil requirements, every rise in oil prices reverberates through the economy.
Fuel costs affect all areas of life, from transportation to inflation. Puri’s announcement was aimed directly at calming fears, emphasising that India has planned for uncertainty through strong reserves and supply chain improvements. The government’s readiness is the key message.
THE HIDDEN COST OF CONSUMER PROTECTION
Puri’s assurance was accompanied by a stark admission about the financial condition of India’s oil marketing companies.
According to the minister, oil marketing companies are currently selling fuel at prices below international benchmarks, resulting in daily under-recoveries of around ₹1,000 crore. Cumulative under-recoveries for this quarter are estimated at ₹1.98 lakh crore, and the total losses for the current quarter are projected to reach nearly ₹1 lakh crore.
Public-sector firms such as Indian Oil, Bharat Petroleum (BP), and Hindustan Petroleum (HP) often absorb these costs when the government limits price increases. This protects consumers briefly, but the math is unforgiving: companies can’t absorb losses forever.
FROM CRISIS TO CAPACITY
Puri argued that the government has turned adversity into an opportunity. “When this crisis began, there were some concerns, but we converted the challenge into an opportunity,” he said.
A key achievement is the expansion of domestic LPG production: output increased from 36,000 to 54,000 metric tonnes daily—a 50 per cent rise that strengthens India’s ability to meet demand without relying as much on imports. This is resilience: produce more at home when the world is unpredictable.
DEMAND SOFTENS, EASING PRESSURE
LPG demand has moderated, with consumption dropping from 90,000 to about 75,000 metric tonnes per day, partly due to seasonal factors. Higher production and lower demand have stabilised inventories. For policymakers in volatile markets, this alignment is rare and welcome. It allows the government to maintain healthy stocks without immediate hardship for consumers.
PRIME MINISTER MODI’S CALL TO CONSERVE FUEL
A day before Puri sought to reassure the nation about fuel stocks, the Centre amplified Prime Minister Narendra Modi’s call for Indians to curb their petrol and diesel consumption. The advice was simple, but its significance was unmistakable: use public transport, share rides, move freight by rail and embrace electric vehicles wherever possible. The message from the government was clear—India’s energy security cannot be safeguarded by strategic reserves and state-run oil companies alone. It also rests on the choices made by ordinary citizens each day. Every litre conserved cuts the country’s import dependence, and every shared journey helps ease the mounting financial burden of keeping the nation’s fuel supply secure.
LET US ALL COME TOGETHER
Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, reinforced the Prime Minister’s appeal. “Let us all come together and make every possible effort to conserve energy in our daily lives, so that the economic burden currently weighing upon the nation may be alleviated,” she said.
Her statement was practical and symbolic. In a nation of over 1.4 billion people, collective behaviour matters. When millions choose Metro over cars or rail over trucks, the effect is clear. In this context, conservation becomes an economic responsibility.
NO DRY-OUTS, NO SUPPLY DISRUPTION
Sharma also moved to dispel fears of shortages. “Our refineries are operating at optimum levels,” she said. “There are no instances of dry-outs at any retail outlets.”
According to the ministry, petrol and diesel stocks are adequate, LPG supplies remain uninterrupted, and no shortages have been reported at distributorships. In the past three days, 1.26 crore LPG cylinders were delivered on 1.14 crore bookings. Commercial LPG sales passed 17,000 tonnes, and auto LPG exceeded 762 tonnes. The data shows that India’s energy distribution network is fully operational. For consumers, this is most important.
THE HOUSEHOLD PERSPECTIVE
For most Indians, reserve figures and under-recoveries are distant abstractions. What matters is whether the cylinder arrives on time. Whether the petrol station has fuel. Whether monthly expenses remain manageable.
For most Indians, what matters is whether the cylinder arrives on time, the petrol station has fuel, and monthly expenses stay manageable. For a middle-class family, LPG price hikes may mean other cutbacks. For street-food vendors, higher fuel costs reduce slim margins. For truckers and taxi drivers, fuel prices affect daily income. Energy policy may be debated in conference halls, but its consequences are felt in kitchens, highways, and small businesses.
BRENT CRUDE SURGES ABOVE $104
- Brent Crude futures gained 30 cents to $104.51 per barrel.
- West Texas Intermediate rose 31 cents to $98.38 per barrel.
These levels make importing nations uneasy. Each crude price increase widens India’s import bill, puts pressure on the rupee, and drives inflation. Higher oil prices ripple through every sector, from agriculture and manufacturing to logistics and retail. Costlier oil makes life expensive.
INDIA’S DELICATE BALANCING ACT
The government is walking a tightrope. Its objectives are clear: Ensure uninterrupted fuel supplies, protect consumers from steep price hikes, preserve the financial health of oil companies, contain inflation, and accelerate the shift to cleaner energy.
These goals often conflict. Protecting consumers strains oil companies; passing costs to them spikes inflation. Greater subsidies heighten fiscal challenges. The balancing act is both political and economic.
BUILDING SUSTAINED RESILIENCE
Puri’s observations show a wider strategy. India aims to strengthen energy security through greater strategic reserves, increased domestic refining and LPG production, diversified imports, the promotion of electric mobility and national conservation. The underlying lesson is unmistakable: countries dependent on imported energy cannot afford complacency. They must prepare for disruption as a permanent reality.
CONFIDENCE, WITH A NOTE OF CAUTION
The immediate picture is reassuring. Stocks are strong, refineries are operating smoothly, fuel deliveries continue uninterrupted, and there is no indication of shortages.
But the financial strain on oil marketing companies is substantial, and sustained high global prices could eventually force difficult policy choices. The government may consider price adjustments, fiscal support, temporary tax relief, and more conservation measures. For now, consumers are protected. Maintaining this depends on global oil market trends.
THE BOTTOM LINE
India has built a formidable energy cushion, and Petroleum Minister Hardeep Singh Puri insists it is strong enough to shield the country from the latest spike in global oil prices. With 60 days of crude oil and LNG reserves and 45 days of LPG stocks in hand, the government says domestic supply remains secure. Refineries are operating at full tilt, and fuel deliveries are outpacing consumer bookings—clear signs that there is no immediate threat of shortages. But this sense of stability comes at a steep price: India is preserving its energy security by forcing state-run oil companies to absorb massive losses, a strategy that may prove difficult to sustain if global market turmoil drags on.
State-run oil companies are burning through nearly ₹1,000 crore every single day to spare Indian consumers the full impact of soaring global energy prices. For now, the country’s fuel depots are well stocked, and supplies remain steady. But beneath that reassuring surface lies a pressing question: how long can India afford to absorb such punishing losses if the turmoil in global oil markets refuses to ease?
