India's Oil Reserves Hold Steady Amid West Asia Crisis

Amid the escalating West Asia crisis, India's strategic crude oil reserves remain stable, with the government securing sufficient supplies for the upcoming two months. Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, expressed confidence during an inter-ministerial briefing, stating, "Our refineries are operating at peak capacity without any disruptions at retail outlets."

Despite a significant rise in Brent crude prices—from $70 per barrel two months ago to over $100—domestic petrol and diesel rates remain unchanged since April 2022, with a Rs 2 reduction back in March 2024. "We have not increased petrol and diesel prices, protecting consumers from international volatility," Sharma affirmed. She acknowledged that Oil Marketing Companies face under-recoveries but assured compliance to maintain market stability.

To counter export pressures and support local supply, India has implemented an export levy on ATF and diesel, ensuring adequate domestic fuel availability. Sharma emphasized that India enjoys a 100 percent gas supply for household consumption and CNG transport. LPG imports, covering 60 percent of needs, benefit from government subsidies despite global price hikes, safeguarding consumer interests.