'India's Energy Supplies Stable Despite Hormuz Disruption': Centre To Parliamentary Panel

Last Updated:March 18, 2026, 00:16 IST

Sources said the Centre informed MPs that India has managed to shield domestic consumers from major disruptions through diversified sourcing and emergency planning

The Centre on Tuesday told a parliamentary panel that it has taken prompt measures to protect India’s energy security amid the ongoing West Asia conflict and the Strait of Hormuz blockade.

The Strait of Hormuz — a vital channel for at least 20 percent of global oil, gas, and LPG traffic — is effectively controlled by Iran’s Revolutionary Guards. The disruptions at the waterway have upended global markets and had consequences far beyond the region’s confines.

The department-related standing committee on petroleum and natural gas convened to assess the situation in West Asia and its potential repercussions on India. The meeting, chaired by a senior BJP member in the absence of committee chairman Sunil Tatkare, focused on India’s readiness to handle the crisis.

According to sources, committee members inquired about the availability of petrol, other petroleum products, and specifically LPG supplies. The central government said despite several countries imposing fuel rationing and restrictions to manage shortages, India has managed to shield domestic consumers from major disruptions through diversified sourcing and emergency planning, the sources said.

LPG SUPPLY

Sources said officials told the committee that LPG supply, a critical concern due to its reliance on imports, is being managed through diversification and increased domestic production.

They said the committee was informed that although about 90 percent of LPG imports typically pass through the Strait of Hormuz, India has secured additional cargoes from multiple global suppliers. Daily delivery levels remain robust at over 50 lakh cylinders, though there has been panic booking.

The sources said officials told MPs that measures such as minimum booking gaps and expanded delivery authentication are being enforced to prevent hoarding and ensure fair distribution. To alleviate pressure on LPG demand, the government has allocated additional kerosene supplies and permitted the temporary use of alternative fuels for commercial establishments.

They said MPs were informed that despite global price fluctuations, domestic LPG prices have been moderated through government support. Coordination with states has been intensified, with monitoring mechanisms and enforcement actions in place to maintain supply stability and prevent diversion even if the crisis prolongs.

The priority, the sources said, is to provide LPG to domestic consumers, who account for more than 85 percent of total consumers with a calibrated approach to ensure regular supply to commercial LPG requirements.

CRUDE PROCUREMENT

Sources said the government told the committee that India’s crude oil supply remains stable, with daily consumption at approximately 55 lakh barrels.

They said the committee was informed that although over 85 percent of crude is imported, strategic procurement has ensured supplies that surpass typical Hormuz-linked volumes. Before the crisis, nearly 45 percent of India’s crude imports passed through the strait, but diversification efforts have significantly reduced this dependence with non-Hormuz procurement accounting for nearly 70 percent.

PETROLEUM PRODUCTS

Sources said officials told MPs that there are no shortages of key petroleum products such as petrol, diesel, kerosene, or aviation turbine fuel, with retail networks operating normally.

They said the MPs were informed that in the natural gas sector, while some Gulf sources have been affected, India has invoked emergency provisions under the Essential Commodities Act to prioritise supply. Households and CNG users continue to receive uninterrupted gas, while industrial consumers face regulated reductions. Alternative LNG imports from countries like Nigeria, Angola, and Oman are helping to offset shortfalls, they were told as per sources.

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