No petro product shortage: Govt junks lockdown talk

“The myth is India has refused to take LNG imports from Russia. The truth is India has never imported LNG from Russia at all. The myth is a major lockdown is coming in the country. The truth is this is completely false,” Union Petroleum and Natural Gas Minister Hardeep Puri said at a business house event on Tuesday.

Urging people to work from home, Puri said whether it was the Covid period or something else, the Opposition always tried to spread rumours, leaving no stone unturned in inciting people.

Besides, the minister ruled out the speculation that the West Asia war would lead to sudden rise in petrol or diesel price, particularly after the Assembly elections.

He added that the cost of petrol and diesel had stayed comparatively steady over the last four years. “LPG supply is more than enough and every petrol pump in the country has sufficient petrol and diesel. There is no fuel supply shortage in the country in the face of the Iran war,” he said.

Puri added that during the period of tension in West Asia, the country had increased its daily LPG production by almost 55 per cent. “This achievement is truly extraordinary and reflects India’s capability, self-reliance and strength in crisis management,” he said, adding that India has 60 days of crude oil, 60 days of LNG and 45 days of LPG reserves available.

The minister added that amid tensions in West Asia, to ensure uninterrupted supply, India has unprecedentedly increased its daily LPG production (from 35,000 tonnes to 54,000 tonnes).

“During this time, many countries experienced fluctuations in oil prices and availability, but India was not affected at all. Some people tried their best to engage in hoarding and spread rumours, but our efforts ensured that there was no shortage of petrol, diesel, or LPG anywhere in the country,” he said.

On LPG demand, Puri said it had decreased to around 75,000 tonnes per day from over 90,000 tonnes previously due to seasonal factors. However, the fuel demand has remained resilient throughout the crisis, with petrol consumption climbing by roughly 6 per cent, he added.

The minister also acknowledged that maintaining the current level of retail petrol prices was burdening the state-run oil marketing companies. “My oil companies are losing Rs 1,000 crore every day,” he said, noting that the sector’s yearly profits might be wiped by a single quarter of losses of Rs 1 lakh crore and that cumulative under-recoveries had increased to about Rs 1.98 lakh crore.

He said at some stage, an assessment needs to be made of how long retailers can sustain losses from selling petrol, diesel and cooking gas (LPG) below cost. The minister, however, refused to speculate on the rise in prices.

Puri highlighted that India has significantly enhanced domestic LPG production from about 36,000 metric tonnes per day to nearly 54,000 metric tonnes per day, helping meet rising demand while ensuring stability in fuel supply and prices amid West Asia conflict.

“At a time of global supply shocks and rising crude prices, India ensured seamless availability of petrol, diesel and LPG across the country, with no reports of shortages. Despite sharp global volatility, fuel prices have largely remained unchanged since 2022, reflecting strong policy coordination and effective supply management,” he said.