India Has 60 Days of Crude Reserves, No Need for Panic: Puri

Petroleum Minister Hardeep Singh Puri said India currently has sufficient crude oil, LNG and LPG reserves, urging citizens not to misread Prime Minister Narendra Modi’s recent appeal for fuel conservation amid the West Asia crisis.

India’s fuel reserves remain stable despite disruptions linked to the ongoing West Asia tensions, Petroleum Minister Hardeep Singh Puri said on Tuesday, while cautioning against panic over Prime Minister Narendra Modi’s recent remarks on reducing fuel consumption.

Speaking at the Confederation of Indian Industry Annual Business Summit in New Delhi, Puri said the country currently holds reserves equivalent to 60 days of crude oil and LNG demand, along with 45 days of LPG stock.

“There is no issue with supply,” the minister said, adding that people should “listen carefully” to the Prime Minister’s remarks instead of drawing “false meanings” from them.

Fuel Conservation Appeal

Over the past two days, Modi has repeatedly appealed to citizens to reduce unnecessary fuel consumption as global crude prices remain volatile due to geopolitical tensions in West Asia.

The Prime Minister urged people to rely more on metro rail services, electric buses and other forms of public transport where possible. He also advised against avoidable foreign travel for the time being.

Government officials later clarified that the appeal was aimed at encouraging prudent use of resources and easing pressure on foreign exchange reserves, not signalling any immediate fuel shortage.

Oil Companies Under Pressure

Puri said state-run oil marketing companies are facing severe financial stress as international crude prices continue to rise sharply.

According to the minister, oil companies are collectively losing nearly ₹1,000 crore every day due to the government’s decision not to fully pass on higher fuel costs to consumers.

He said total losses could soon touch ₹1.98 lakh crore, while quarterly losses have already crossed the ₹1 lakh crore mark.

The minister noted that crude oil prices, which hovered around $64–65 per barrel earlier, have now climbed close to $115 per barrel following the escalation of the regional conflict.

Hormuz Route Impact

A significant portion of India’s energy imports earlier moved through the strategically important Strait of Hormuz, one of the world’s busiest oil shipping routes.

Puri said nearly 85% of India’s crude oil imports and around 60% of LPG imports were dependent on the route before disruptions began.

Following the closure and instability around the corridor, India was forced to arrange alternate supply chains and shipping routes.

Officials said the government and public sector companies have been working continuously to avoid supply disruptions across major cities and industrial centres.

LPG Production Increased

The minister also highlighted a sharp increase in domestic LPG production in response to the crisis.

Before the current disruptions, India was producing around 35,000 to 36,000 metric tonnes of LPG daily. That figure has now been increased to nearly 54,000 metric tonnes per day.

Puri described the jump as a major operational achievement aimed at strengthening energy security during a period of uncertainty in global markets.

Strategic Reserves Explained

India currently operates underground strategic crude storage facilities at Visakhapatnam, Mangaluru and Padur with a combined capacity of 5.33 million metric tonnes.

Officials said these facilities are around 64% full at present, holding roughly 3.37 million metric tonnes of crude oil — enough for nearly 9.5 days of national demand.

Combined with inventories held by oil companies and other reserves, India’s total available stock currently covers around two months of crude and gas consumption.

Rising Import Bill

India imports nearly 88% of its crude oil requirement, making the economy highly sensitive to global price swings.

Government estimates suggest the country consumes roughly 5 million barrels of crude oil every day. Before the latest crisis, India spent nearly ₹3,141 crore daily on oil imports. With prices surging, the import bill has reportedly climbed to about ₹4,760 crore a day.

This translates into an additional burden of more than ₹1,600 crore daily on the economy.

Market experts believe petrol and diesel prices could see a hike of ₹4–5 per litre in the coming days if global crude prices remain elevated. LPG cylinder prices may also witness an increase.