India's energy sector faces a complex situation with stable fuel prices and ample supply of crude oil, LPG, and natural gas, holding over 60 days of stock. However, to manage potential shortages and a rising import bill, the government has limited retail fuel sales to commercial consumers for 90 days. Refiners are diversifying crude sources, increasing imports from the UAE, Africa, and Brazil, while fertilizer stocks are also reported as adequate despite global price hikes.
India's energy supply remains stable with comfortable stock levels, according to Union Minister Hardeep Singh Puri. The country holds over 60 days of stock for oil and natural gas, and 75-80 days for LPG. Puri stated that fuel prices in India have decreased by 3.1% between May 2022 and May 2026, a stark contrast to significant price increases observed globally. Despite these assurances, India has implemented measures to prevent potential fuel shortages. Retail stations are now limiting sales, specifically banning commercial consumers from purchasing gasoline and diesel. This restriction is in effect for 90 days and aims to safeguard supply for individual consumers amidst rising oil import costs and wholesale inflation, exacerbated by disruptions in the Middle East. Indian refiners have secured crude oil supplies through at least August by increasing purchases from diverse sources including the UAE, Africa, and Brazil. This strategic diversification follows a specific agreement with Abu Dhabi's national oil company, ADNOC, and aims to mitigate risks associated with Middle East supply concerns. Meanwhile, fuel prices in major Indian cities remained unchanged on June 13, providing a temporary respite for consumers after cumulative price hikes of nearly ₹7.50 per litre since mid-May. Oil companies have maintained current rates despite ongoing global crude oil market volatility and geopolitical tensions impacting energy supplies. In a related development, Union Agriculture Minister Shivraj Singh Chouhan has assured sufficient fertilizer stocks for the kharif and rabi seasons. The government is prepared to manage potential impacts from El Nino, and subsidized rates for urea and DAP will continue, even with increased global fertilizer prices.