No Shortage of Energy in Country, LPG, Oil Supply Situation Comfortable: Hardeep Singh Puri

Why It Matters

India’s ability to keep fuel affordable while maintaining ample reserves demonstrates policy effectiveness and shields the economy from volatile global oil markets. The move also reduces import dependence, supporting broader energy‑security goals.

Key Takeaways

• India’s fuel prices fell 3.1% from May 2022‑2026
• Crude and gas stocks cover over 60 days each
• LPG production rose to 54,000 MT/day, cutting imports
• Excise duty cuts saved India ~$12 billion in budget
• E85 pumps target 5,000 by Dec 2027

Pulse Analysis

Global oil markets have been turbulent since the Iran conflict, pushing petrol prices up 35‑70 percent in major economies. India, however, bucked the trend, delivering a 3.1 percent price decline over the past four years. The government attributes this success to three strategic excise‑duty reductions—most recently a Rs 10‑per‑litre cut—translating into roughly $0.12 per litre saved for consumers and an estimated $12 billion relief for the fiscal balance. This policy agility underscores how fiscal tools can temper external price shocks without compromising revenue.

Beyond pricing, India’s energy security narrative rests on robust inventory buffers. The Ministry reports over 60 days of crude oil and natural‑gas reserves, while LPG stocks now stretch to 75‑80 days, supported by a surge in domestic production from 32,000 MT to 54,000 MT per day. This expansion reduces reliance on imports and aligns with the push to transition LPG connections to piped natural gas, further stabilizing supply chains. Such measures not only safeguard against geopolitical disruptions but also lower the trade deficit linked to fuel imports.

Looking ahead, the government is betting on alternative fuels to diversify the mix. The rollout of E85 ethanol‑blended petrol pumps, slated to reach 5,000 by December 2027, signals a commitment to greener mobility and reduced oil intensity. Coupled with diplomatic actions—such as protesting the US strike on a merchant vessel—India is positioning itself as a resilient energy consumer that can navigate both market volatility and geopolitical risks. These steps collectively reinforce the country’s long‑term growth trajectory while keeping energy affordable for households and industry alike.