India has sufficient fuel reserves at present, but the central government has directed refineries across the country to increase the production of Liquefied Petroleum Gas (LPG) in anticipation of a potential global energy disruption. According to government sources, both public and private refineries have been asked to boost LPG output as a precautionary measure amid growing uncertainty in global energy markets. Officials stressed that India’s current stock of crude oil and petroleum products remains adequate to meet domestic demand.

The move comes against the backdrop of rising geopolitical tensions in West Asia, which have raised concerns about global oil supply chains. Authorities have indicated that India’s position regarding crude oil, LPG, and other petroleum products remains stable due to diversified sourcing and sufficient reserves. Officials also noted that energy imports are being sourced from countries outside the Gulf region to mitigate any disruption in supplies linked to the situation in the Strait of Hormuz.

Government sources said that while there is currently no shortage of fuel in the country, the directive to increase LPG production is intended to strengthen preparedness. Oil marketing companies and refineries have been asked to maintain higher operational readiness so that domestic consumption remains unaffected even if global supply routes face interruptions. The strategy is aimed at ensuring uninterrupted access to essential fuels for households and industries.

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The uncertainty stems partly from escalating tensions involving Iran, which has threatened restrictions in the Strait of Hormuz, a critical global oil transit route. Reports have suggested that vessels associated with the United States, Israel, and several Western nations could face restrictions in the waterway. Any disruption in this shipping corridor could potentially impact global crude oil shipments and push international prices higher.

Officials also highlighted the growing importance of energy imports from Russia in strengthening India’s energy security. Since 2022, India has significantly increased crude oil purchases from Russia. Government data indicates that Russian crude accounted for just 0.2 percent of India’s total oil imports in 2022, but by February this year, the share had risen to nearly 20 percent, amounting to around 1.04 million barrels per day.

In addition to crude imports, India has also secured long-term liquefied petroleum gas supply agreements to maintain adequate domestic availability. Public sector oil companies signed a one-year contract in November 2025 to import approximately 2.2 million tonnes of LPG from the United States Gulf Coast during 2026. These shipments began in January and are expected to support domestic LPG supply as India prepares for possible volatility in global energy markets.

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