No shortage of fuel in country, says government

There is no shortage of petrol, diesel, kerosene, and aviation turbine fuel in the country, Union Petroleum Minister Hardeep Singh Puri informed the Lok Sabha on Thursday (March 12, 2026) while adding that India’s crude supply has been secured amid the conflict in West Asia.

“This is not the moment for rumour-mongering or fake narratives. India is navigating the most severe global energy disruption in recorded history,” Mr. Puri said, adding, “Every citizen, regardless of political affiliation, has a stake in that. India must stand united behind its energy warriors, behind the institutions managing this crisis, and behind the national interest.”

The Minister was responding to a notice submitted by Leader of Opposition in the Lok Sabha, Rahul Gandhi, on the shortage on LPG or cooking gas. It is the “foremost priority” of the government that the kitchens of over 33 crore families, especially the “poor and the underprivileged, do not face any shortage” of gas, and domestic supply is fully protected, with the delivery cycle remaining unchanged, Mr. Puri said.

The government has also introduced regulation of commercial LPG cylinders to prevent hoarding and diversion with “20% of the average monthly commercial LPG requirement” to be allocated by oil-marketing companies in co-ordination with State governments, the Union Minister said.

Commercial LPG is normally sold in a fully deregulated over-the-counter market without subsidy, registration, booking, or purchase limits, allowing any buyer to procure cylinders in any quantity.

“In a major decision, 20% of the average monthly commercial LPG requirement will be allocated from today by OMCs, in coordination with the State governments so that there is no hoarding or black marketing,” Mr. Puri said.

Commercial LPG is sold in a “fully deregulated over-the-counter market without subsidy, registration, booking, or purchase limits” which can let a buyer procure “cylinders in any quantity” Mr. Puri said. Without restriction, such bulk purchase “could have been diverted to the grey market at the expense of genuine commercial consumers and domestic households alike”, the Minister said.

He noted that field reports of shortage indicate “hoarding and panic-booking at the distributor and retail level, driven by consumer anxiety rather than any actual supply shortage.”

Raising concerns about India’s energy security, Mr. Gandhi had alleged that the Narendra Modi government had “bartered” the right to determine its relationship with different oil suppliers with the U.S. because of a “compromise”. The Congress leader said there is widespread panic about LPG, restaurants are closing, street vendors are affected and that “the pain has just started’”.

“The foundation of every single nation is its energy security. And I do not say this lightly, but allowing the U.S. to decide who we buy oil and gas from, whether we buy oil from Russia or not, whether our relationship with different oil suppliers can be decided by us, this is what has been bartered. This is a very puzzling fact for me as to why a nation the size of India would allow the president of any other nation to give us permission to buy Russian oil, to decide who our relationships are with,” Mr. Gandhi said.

He, however, could not complete his speech as he sought to draw certain inferences about Mr. Puri which was disallowed by Speaker Om Birla who pointed out that the Opposition leader should have given prior notice before making any allegation on the floor of the House.

“Speak on the issue for which you have given a notice. If you want to speak on something else, then give a separate notice,” the Speaker told Mr. Gandhi.

Subsequently, the Petroleum Minister informed the Lok Sabha that India was importing approximately 60% of its LPG requirements from Gulf countries such as Qatar, UAE, Saudi Arabia, and Kuwait before the start of the conflict but have diversified its supply chains since then.

“Procurement has now been actively diversified, with cargoes being secured from the U.S., Norway, Canada, Algeria, and Russia, in addition to available Gulf sources,” he said amid constant sloganeering from the Opposition members. “The House should be clear on this: the rush-booking pressure in some localities reflects a demand distortion, not a production or supply failure,” he added.

The Minister said it is a “first time in recorded history” that the Strait of Hormuz, which facilitates the passage of 20% of world’s crude, natural gas and LPG, has been closed to commercial shipping for 13 days now.

“India’s crude supply position is secure, and volumes secured exceed what Hormuz would have delivered,” he said, adding that the share of “non-Hormuz” sources in India’s crude imports had risen to around 70%, from about 55% before the crisis.

Mr. Puri said India now sources crude oil from 40 countries compared to 27 in 2006-07, describing the diversification as a result of sustained policy initiatives and diplomatic outreach by the Prime Minister. Refineries across the country were operating at high-capacity utilisation, in some cases exceeding 100%, he said. Domestic piped gas and compressed natural gas for vehicles would continue to receive full supply, while industrial and manufacturing consumers would receive up to 80% of their previous six-month average consumption, he said.

Fertiliser plants would receive up to 70% of their earlier allocation to protect agricultural supply chains, while refineries and petrochemical units would absorb managed reductions, he said.

Sujata Sharma, Joint Secretary at the Ministry, said the help of State governments would be sought to identify the beneficiaries. “The role of the State government would be very important,” she said, adding, ”They have been requested through OMCs to identify the list of beneficiaries so that the delivery of commercial cylinders can be made on a priority basis.”

She informed that no “dry out” has been reported by distributors of LPG cylinders although there has been a “manifold increase” in bookings due to panic.

(With inputs from Saptaparno Ghosh)