Global Energy Turmoil: India Stabilizes Fuel Prices Amid International Volatility, Sources Show Comforting Surpluses

Global Energy Turmoil: India Stabilizes Fuel Prices Amid International Volatility, Sources Show Comforting Surpluses​

Union Minister Hardeep Singh Puri has assured that the country faces no shortage of energy. He stated on Saturday that the supply situation for crude oil, LPG, and natural gas remains "quite comfortable," despite global fuel price volatility caused by geopolitical events. These remarks underscore India’s managed resilience in the face of rising international costs.

The Minister revealed data showing significant international price inflation while India successfully insulated its consumers. He noted that rates within India dropped by 3.1 per cent between May 2022 and May 2026, contrasting sharply with other nations.

Fuel Price Mitigation Vs International Spike​

Puri detailed the disproportionate increases seen across various countries in response to the ongoing Iran conflict. He reported that fuel prices rose dramatically internationally, citing figures such as a 70 per cent increase in Pakistan and a 35 per cent rise in the United States.

"On one hand, prices rose by 70-80 per cent in the world, but here (Prime Minister Narendra) Modi ji reduced prices by 3.1 per cent," he stated. This price mitigation was achieved through strategic policy decisions.

The Minister explained that fuel prices stabilized due to proactive government intervention. Specifically, he pointed out that the Prime Minister had reduced the central excise duty on fuels three times: in November 2021, May 2022, and recently.

Domestic Price Controls and Supply Security​

Puri clarified that the stabilization was a result of multiple cost components. These include the extraction cost, insurance, freight, margin, Centre’s excise duty, and states' VAT. He added that a recent reduction of Rs 10 a litre on the excise duty for petrol and diesel placed an additional burden of Rs 1 lakh crore on the budget.

When domestic fuel prices were raised, the increase was contained at Rs 7.60 a litre, which he emphasized led to the lowest increase in India compared to Japan. Regarding targeted consumption caps, Puri clarified that limiting diesel sales to 200 litres per day is strictly aimed at curbing black marketing activities.

Energy Reserves and LPG Self-Reliance Boost​

Addressing concerns over energy security, Puri confirmed substantial reserve buffers are in place. He announced that the country holds a stock of crude oil sufficient for over 60 days and maintains natural gas stock adequate for more than 60 days.

The situation regarding LPG is also reported as comfortable. Puri highlighted significant growth in domestic production capabilities. While consumption stood at 80,000 metric tonnes (MT) per day, India’s manufacturing capacity was increased from 32,000 MT to 54,000 MT, thereby reducing dependency on imports.

E85 Expansion and Global Maritime Concerns​

Minister Puri also provided an update on the expansion of E85 fuel infrastructure. Currently, there are 47 E85 fuel pumps operating in the National Capital Region (NCR). The ambitious targets include increasing this number to 500 by December 2026 and further escalating it to 5,000 pumps by December 2027.

Responding to inquiries concerning the loss of three Indian seafarers during a US military strike on a merchant vessel in the Gulf of Oman, Puri confirmed that India has lodged a strong protest. He added that he had summoned the US Charge d'Affaires twice, and External Affairs Minister S Jaishankar raised the matter with US Secretary of State Marco Rubio.