Fuel Supplies Stable: India's Oil Companies Deny Panic Buying Fears

New Delhi, March 25 The government stated that there is no shortage of petrol, diesel, or LPG in the country, and urged citizens not to believe rumors circulating on social media or resort to panic buying.

Supplies of LPG remain affected due to the ongoing disruption in the Strait of Hormuz.

In a media briefing, Sujata Sharma, a Joint Secretary in the Ministry of Petroleum and Natural Gas, said that all refineries are operating at high capacity with "adequate crude inventories," while "sufficient stocks of petrol and diesel are being maintained," and retail outlets are functioning normally nationwide.

"Don't believe in rumors. We have adequate fuel stocks, and the government is making all efforts to provide them to consumers," she said.

She added that "panic buying was reported in some areas due to rumors," leading to unusually high sales and crowding at petrol pumps, even though "adequate stocks of petrol and diesel are available at all petrol pumps."

"There are enough stocks of petrol and diesel, and there is no shortage at any retail outlet (petrol pump). Oil terminals also have sufficient stocks," she said.

Regarding LPG, the government stated that supply "continues to be affected due to the prevailing geopolitical situation," though no dry-outs have been reported, and cylinder deliveries are continuing as normal.

Additional allocations have been made to states, with commercial LPG supply now raised to 50 percent in phases, prioritizing sectors such as restaurants, hotels, and community kitchens.

To ease pressure on LPG, the government is accelerating the shift to piped natural gas (PNG), with priority allocation ensuring "100 percent supply to domestic PNG and CNG transport," while industrial and commercial users are receiving around 80 percent of their usual supply.

City gas distribution (CGD) companies have been directed to prioritize PNG connections for households and key institutions, with incentives being offered for both domestic and commercial users. The government has also asked states to fast-track approvals for pipeline expansion and simplify right-of-way permissions.

Sharma said that in the last 25 days, 2.5 lakh new PNG connections have been issued, and 2.20 lakh LPG consumers have switched to PNG.

Additional measures include increased domestic LPG production, an extra allocation of 48,000 kilolitres of kerosene to states, and the promotion of alternative fuels such as PNG, electricity, and coal to reduce dependence on LPG.

States have been directed to crack down on hoarding and black marketing, with over 2,700 raids conducted, around 2,000 cylinders seized, more than 650 FIRs registered, and 155 arrests made so far.

Reiterating its advisory, the government said it is "making all efforts to ensure the availability of petrol, diesel, and LPG" and urged citizens to rely on official information, avoid panic purchases, and conserve energy.

Separately, the three oil marketing companies also stated that there was no shortage on social media.

Indian Oil Corporation (IOC), the nation's largest oil firm, said, "There is no shortage of petrol or diesel," adding that its outlets are "well-stocked and fully operational."

It cautioned that rumors "can create unnecessary concern and disrupt normal supply patterns" and urged citizens to "avoid panic buying and rely only on verified information."

IOC Chairman A S Sahney said, "We would like to assure all citizens that there is no shortage of petrol or diesel. IndianOil outlets nationwide are well-stocked and functioning normally." "Unverified rumors can lead to unnecessary panic and supply disruptions. Please avoid panic buying and trust only official sources. Let us act responsibly and support seamless fuel availability for all," he added.

Bharat Petroleum Corporation Ltd (BPCL) termed reports of fuel shortages in certain areas "completely unfounded," asserting that "there is no shortage of fuel across the nation."

The company said that India is a net exporter of petrol and diesel and has "adequate stocks of crude oil, petrol, diesel, and ATF," with supply chains operating "smoothly without any disruption."

It added that it remains "fully operational and committed to ensuring uninterrupted fuel supply."

Hindustan Petroleum Corporation Ltd (HPCL) also said that there is "no shortage of petrol, diesel, or LPG across the country," with supplies remaining stable and stocks adequate.

It advised customers not to be misled by rumors or engage in panic buying, and to "continue with normal consumption patterns," adding that it is committed to ensuring "an uninterrupted and seamless fuel supply" across its network.

While the war in West Asia has disrupted crude oil, LNG, and LPG supply chains, India, with its diversified sourcing, has been able to secure enough supplies of crude oil (the raw material used to make fuels like petrol and diesel) from West Africa, Latin America, and the US.

The disruption in liquefied natural gas (LNG) due to India's largest supplier's facilities in Qatar being hit by the war has led to prioritizing the fuel to domestic users and CNG, while some curtailment has been done for industrial users like fertilizer plants.

LPG is the most impacted by the war as the country relied on imports to meet 60 percent of its demand. A majority of it came from the Gulf countries, from where supplies have been hit. This has led to the government prioritizing supplies to domestic household kitchens and curtailing usage by commercial establishments such as hotels and restaurants by at least half.