India Holds 25 Days Of Crude, Petrol And Diesel Stocks: Government Sources

Amid rising tensions in West Asia and concerns over the disruption of the Strait of Hormuz, government sources have said India has adequate fuel buffers in place.

India currently holds about 25 days’ worth of crude oil reserves and an additional 25 days of energy products. Together, this provides roughly 50 days of fuel sufficiency. In addition, the country holds 4.094 million tonnes of crude in Strategic Petroleum Reserves (SPRs), which are currently about 77% full. At full capacity of 5.33 million tonnes, SPRs can cover roughly 9.5 days of demand.

Nearly two-fifths of India’s crude imports typically pass through the Strait of Hormuz. Hence, supply security is a key concern following the recent escalation that pushed Brent crude above $80 per barrel.

What About LNG And LPG Supplies?

Officials indicated that India is also “comfortably placed” in terms of liquefied natural gas (LNG) and liquefied petroleum gas (LPG). LNG supplies are estimated to be sufficient for the next two to three weeks, even as QatarEnergy temporarily halted production due to military-related disruptions.

On LPG, authorities said India had already begun diversifying sourcing after damage to infrastructure in Saudi Arabia raised export risks. While alternative suppliers may be located in distant geographies, officials said availability is not a constraint.

Why Are Oil Prices Rising?

Global oil prices have climbed for a third straight session amid fears of supply disruption from the Middle East. Shipping and insurance costs for oil and gas cargoes have also risen sharply.

Brent crude was trading around $79.44 per barrel early Tuesday after surging to $82.37 in the previous session, its highest level since January 2025. US West Texas Intermediate (WTI) crude rose to about $72.40 per barrel after touching its highest level since mid-2025.

Traders remain concerned that any prolonged disruption to the Strait of Hormuz could further tighten global supply.

What Measures Has The Government Taken?

To keep a close eye on the developments, the Petroleum Ministry has established a control room that operates 24x7 in coordination with refiners, shippers and other stakeholders.

According to the statements of the officials, the situation is closely monitored, but it is expected that, in the coming two weeks or so, the tension can be de-escalated. They also made it clear that they do not have any immediate plans to increase the retail petrol and diesel prices.

Energy companies have access to supplies not routed through the Strait of Hormuz, which could help offset temporary disruptions. The government has restated that the availability and affordability of energy supplies are a priority.

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What Does This Mean For Investors?

From a market perspective, the 50-day inventory cushion and active monitoring reduce the risk of immediate supply disruption or emergency policy moves. This should limit near-term panic in fuel-sensitive stocks.

However, inventories only buy time. If the conflict extends beyond 10–15 days and crude sustains above $82–$90 per barrel, pressure could build on oil marketing margins, inflation expectations and India’s current account deficit.

To the investors, the emphasis is not on availability but on the price direction. The oil producers upstream can enjoy increased realisations, although the aviation, paints, chemicals and logistics sectors are at risk. Duration is the most important variable of markets rather than domestic stock levels.

Sources:

The Hindu

The Hindu BusinessLine

India Today