India secures 60-day crude supply, 8 lakh metric tonnes LPG cargoes en route: Govt

India has secured crude oil supplies for the next 60 days despite escalating tensions in the Middle East and disruptions around the Strait of Hormuz, the government said, asserting that diversified sourcing has more than compensated for any supply risks.

The Ministry of Petroleum and Natural Gas said the country is currently receiving higher volumes of crude from its network of over 41 global suppliers, particularly from the western hemisphere, offsetting any disruption in shipments routed through the Strait. “Despite the situation at the Strait of Hormuz, India is today receiving more crude oil from its 41-plus suppliers across the world than what was previously arriving through the Straits. High volumes available in international markets — especially from the western hemisphere — have more than compensated for any disruption,” the ministry said.

Advertisement

Domestic refiners are operating at peak capacity, with all refineries running at over 100% utilisation. Oil marketing companies have already tied up crude supplies for the next two months, ensuring there is no immediate supply gap, the ministry added.

India currently has a total reserve capacity of 74 days, while the actual stock cover stands at around 60 days. This includes crude oil, petroleum products, and strategic reserves stored in underground caverns, even after nearly four weeks into the West Asia crisis.

The government also highlighted a sharp increase in domestic refinery production, which has increased by about 40%. This has pushed daily LPG output to around 50,000 metric tonnes, meeting over 60% of the country’s demand. As a result, India’s net daily LPG import requirement has dropped to about 30,000 metric tonnes.

To further strengthen supplies, the government said 800,000 metric tonnes of LPG cargoes are already secured and en route from countries including the United States, Russia and Australia. These shipments are being handled across India’s expanded network of 22 LPG import terminals, compared with 11 terminals in 2014.

On the demand side, oil companies are currently delivering more than 50 lakh LPG cylinders per day. Demand, which surged to 89 lakh cylinders amid panic buying, has now stabilised back to normal levels. The government added that commercial LPG cylinder allocations have been increased to 50% in coordination with state authorities to prevent hoarding and black marketing.