NEW DELHI, April 4:The government on Saturday urged citizens to avoid panic buying of petrol, diesel and LPG, saying fuel supplies remain adequate despite disruptions linked to the closure of the Strait of Hormuz.
The Ministry of Petroleum and Natural Gas said the government is taking proactive steps to ensure the uninterrupted availability of petroleum products and cooking gas, while advising people to rely only on official information and conserve energy.
The government has prioritised domestic LPG and piped natural gas (PNG) supplies, particularly for households, hospitals and essential services, and has implemented measures to boost refinery output and manage demand, including extending LPG refill intervals.
Authorities have also stepped up enforcement against hoarding and black marketing, conducting more than 3,700 raids and issuing around 1,000 show-cause notices to LPG distributors, with 27 dealerships suspended so far.
Despite supply pressures from the geopolitical situation, there are no reports of LPG shortages at distributor points, the ministry said in a statement, adding that about 51 lakh cylinders were delivered on Friday and online bookings accounted for 95 per cent of the total demand.
Commercial LPG supplies have been capped at 70 per cent of pre-crisis levels, while alternative fuels, such as kerosene and coal, are being deployed to ease demand.
On natural gas, the government said it is ensuring full supplies to households and transport sectors, while industrial and fertiliser sector allocations are being gradually increased, supported by incoming LNG cargoes.
All refineries are operating at high capacity with adequate crude inventories, and petrol pumps across the country remain fully stocked, the ministry said.
To shield consumers from rising global oil prices, the government has cut excise duty on petrol and diesel by 10 rupees per litre and imposed export levies on diesel and aviation fuel to boost domestic availability.
The ministry said state governments have been asked to intensify monitoring, counter misinformation and ensure smooth distribution of fuels, reiterating that India’s overall energy supplies remain secured.
NO PAYMENT ISSUE WITH IRAN: INDIA
India said on Saturday that there are no payment issues with Iran for crude imports and that refiners continue to source oil from the country, as well as from a wide range of global suppliers.
In a post on X, the Ministry of Petroleum and Natural Gas dismissed reports that an oil tanker carrying Iranian crude had rerouted mid-voyage from its previously indicated destination of India, which would have marked the first such shipment in nearly seven years, to China, saying the claims overlooked standard industry practice where cargoes can change destination during transit based on trade optimisation and operational flexibility.
Terming as “factually incorrect” assertions that the cargo was diverted from its previously indicated destination of Vadinar in Gujarat to China due to payment hurdles, the ministry said, “there are no payment hurdles for Iranian crude imports”.
“India imports crude oil from 40+ countries, with companies having full flexibility to source oil from different sources and geographies based on commercial considerations,” it said.
“Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran, and there is no payment hurdle for Iranian crude imports, contrary to the rumours being circulated.” Ship-tracking firm Kpler on Friday stated that Aframax tanker Ping Shun, built in 2002 and sanctioned by the US in 2025, is now signalling Dongying in China as its destination instead of Vadinar in Gujarat, which it had indicated earlier this week.Oil on Ping Shun would have been the first Iranian crude that India would have purchased since 2019. Indian refiners have been looking at opportunities to purchase a few cargoes of Iranian oil on water following the recent sanctions waiver by Washington.
The ministry clarified that changes in vessel destinations during transit are common in global oil trade, as bills of lading often indicate tentative discharge ports and cargoes may be rerouted mid-voyage for operational and commercial reasons.”Claims on vessel diversion ignore how the oil trade works. Bills of Lading often carry indicative discharge ports, destinations and on-sea cargoes can change destinations mid-voyage based on trade optimisation and operational flexibility,” the ministry said.
“It is reiterated that India’s crude oil requirements remain fully secured for the coming months.” The ministry also said that an LPG vessel, Sea Bird, carrying about 44,000 tonnes of Iranian LPG, berthed at Mangalore on April 2 and is currently discharging cargo.
Historically, India was a major buyer of Iranian crude, importing significant volumes of Iranian light and heavy grades due to strong refinery compatibility and favourable commercial terms.
Following sanctions tightening in 2018, imports ceased in May 2019, with volumes replaced by Middle Eastern, US and other grades. At peak, Iranian crude accounted for 11.5 per cent of India’s total imports.
India used to buy 5,18,000 barrels per day of Iranian oil in 2018, which slowed to 2,68,000 bpd between January and May 2019 when the US granted waivers to a few buyers. There have been no imports since.
The key grades that Indian refiners used to purchase are Iran light and Iran heavy crudes.
The US last month waived sanctions on the purchase of Iranian oil at sea for 30 days in its latest attempt to ease oil prices that have been driven up by the US-Israeli war on Iran.
That window expires April 19. An estimated 95 million barrels of Iranian oil are on vessels at sea, of which around 51 million barrels could be sold to India, and the remaining are better suited for buyers in China and Southeast Asia. (PTI)
