Crude supply secure, LPG imports under watch: Centre says 2 LNG cargoes on way

India’s crude oil supply remains secure even as regional tensions threaten shipping through the Strait of Hormuz, with a large share of imports now coming through alternative routes and additional cargoes on the way, government officials said on Wednesday.

“On crude supply, India's crude supply remains secure. Daily consumption is at about 55 lakh barrels. We have secured more than what would normally have arrived through the Strait of Hormuz during this period,” said Sujata Sharma, Joint Secretary (Marketing & Oil Refining) in the Ministry of Petroleum and Natural Gas.

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Officials said India continues to depend heavily on imports for LPG, with nearly 60% of domestic requirement sourced from overseas. Around 90% of these supplies normally pass through the Strait of Hormuz, highlighting the country’s exposure to disruptions in the key global energy route amid the ongoing West Asia conflict.

Addressing a press conference in Delhi, officials said two liquefied natural gas (LNG) cargoes are currently on their way to India to ease concerns over a possible shortage as global supplies tighten.

Sharma said crude oil supplies remain stable despite tensions in the region. “Oil marketing companies have sourced cargoes from multiple countries, and nearly 75% of crude is now coming through routes other than Hormuz, compared with around 55% earlier,” she said.

Responding to reports of panic booking of LPG cylinders, Sharma said there is no need for consumers to rush. “Our normal delivery cycle for domestic LPG continues to be around 2.5 days. Customers should not panic or make advance bookings unnecessarily,” she said.

She added that the government is closely monitoring the situation and taking steps to maintain stable fuel supplies during the ongoing global crisis.

“Our refineries are operating at the highest capacity utilisation, with some running above 100% of rated capacity. India’s total gas consumption is around 189 mmscmd, of which about 97.5 mmscmd is produced domestically and the rest is imported. Around 47.4 mmscmd of supply has been impacted due to force majeure conditions,” Sharma said.

Disruptions in maritime movement have affected LPG availability in some areas, prompting the government to invoke provisions under the Essential Commodities Act to prioritise fuel allocation. LPG and CNG have been placed under priority supply to prevent hoarding and ensure essential consumption is not affected.

To increase domestic output, refiners and gas processors have been directed to divert C3 and C4 hydrocarbon streams specifically for LPG production. Officials said domestic LPG production has risen by about 25% since the order was issued on March 9.

Providing an update on shipping movement, Rajesh Kumar Sinha, Special Secretary in the Ministry of Ports, Shipping and Waterways, said 28 Indian-flagged vessels are currently operating in the Persian Gulf, including 24 in the western side of the Strait of Hormuz and four in the eastern region.