India has secured alternative crude and gas supplies and diversified sourcing routes to safeguard domestic energy availability amid disruptions caused by the ongoing conflict in West Asia, Petroleum and Natural Gas Minister Hardeep Singh Puri said in Parliament on Thursday, calling the current situation a never-seen-before event in “modern energy history”.
The minister said India’s crude supply position remains secure despite disruptions to shipping through the Strait of Hormuz, a key global energy transit route that carries about 20 per cent of the world’s crude, natural gas and LPG.
The minister informed the Lok Sabha that India has increased crude sourcing from non-Hormuz routes to around 70 per cent of its imports, compared with about 55 per cent before the conflict, ensuring that the country has access to volumes exceeding what the disrupted route would have delivered. India currently sources crude from about 40 countries, up from 27 in 2006-07.
“There is no shortage of petrol, diesel, kerosene, aviation turbine fuel or fuel oil,” he said, adding that retail outlets across the country remain fully stocked and supply chains are functioning normally.
“For the first time in recorded history, the Strait of Hormuz has been effectively closed to commercial shipping. Despite India having no role in causing the conflict, like many countries, India has to navigate through its consequences, Puri noted.
Measures taken
On natural gas, the government has introduced a priority allocation mechanism under the Natural Gas Control Order issued on March 9 under the Essential Commodities Act. Domestic piped gas to households and CNG for vehicles will continue to receive 100 per cent supply, while industrial consumers will receive up to 80 per cent of their recent average demand and fertiliser plants up to 70 per cent to safeguard the agricultural supply chain.
India produces around 90 million metric standard cubic metres per day (MMSCMD) of natural gas domestically. About 30 MMSCMD earlier imported from Gulf sources has been partially offset through alternative LNG cargoes arriving through other routes, the minister said.
To ensure cooking gas availability, the government has also diversified LPG imports beyond the Gulf region to include suppliers such as the United States, Norway, Canada, Algeria and Russia. Refineries have been directed to maximise LPG output, leading to a 28% increase in production over the past five days.
India imports roughly 60 per cent of its LPG requirements, with the remainder produced domestically. The government has issued an LPG Control Order directing refineries to channel certain hydrocarbon streams exclusively toward domestic cooking gas supply.
The government’s priority is to ensure uninterrupted cooking gas supply to more than 33 crore households, while also preventing panic buying and hoarding. Measures such as a minimum booking gap of 25 days in urban areas and 45 days in rural areas have been introduced to manage demand, said Puri.
Puri said that despite global price pressures, the government has shielded consumers from sharp increases. The price for beneficiaries under the Pradhan Mantri Ujjwala Yojana stands at ₹613 per 14.2-kg cylinder in Delhi, while the non-subsidised price is ₹913, lower than the estimated market-linked price of about ₹987.
The minister added that the government has approved ₹30,000 crore in compensation to oil marketing companies against losses of about ₹40,000 crore in 2024-25.
Puri said coordination is underway with state governments to monitor supply and prevent diversion, with district-level committees being formed and enforcement actions already initiated in several states.
