Govt acts to secure fuel supply amid Hormuz crisis

Metro India News | NEW DELHI 

The Centre has intensified measures to ensure uninterrupted availability of petrol, diesel and LPG across the country amid disruptions caused by the closure of the Strait of Hormuz, even as it urged citizens to avoid panic buying.

In an official statement, the oil ministry said refineries are operating at high capacity with sufficient crude reserves, and fuel stocks remain adequate nationwide. While retail outlets are functioning normally, rumours sparked temporary surges in demand in a few states, leading to crowding at petrol pumps.

Authorities clarified that there is no shortage of petrol or diesel, and supplies are stable across all regions.

To strengthen domestic availability, the government has reduced excise duty on petrol and diesel by Rs 10 per litre. It has also imposed export levies of Rs 21.50 per litre on diesel and Rs 29.50 per litre on aviation turbine fuel (ATF) to discourage outbound shipments and maintain local supply.

In the gas sector, priority allocation has been given to households and transport. Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) are receiving 100 per cent supply, while industrial and commercial users are being supplied around 80 per cent of their average consumption. Fertiliser plants are currently receiving 70–75 per cent allocation, with additional LNG cargoes being arranged.

The government is also accelerating the expansion of city gas distribution networks and encouraging a shift from LPG to PNG. Over 2.9 lakh new PNG connections were added in March, with companies such as Indraprastha Gas, Mahanagar Gas, GAIL Gas and BPCL offering incentives to boost adoption.

LPG supplies have been affected to some extent due to geopolitical tensions, but deliveries remain normal, with over 55 lakh cylinders supplied daily. Commercial LPG supply has recovered to nearly 70 per cent of pre-crisis levels, prioritising essential sectors like hospitality and food services. To prevent hoarding and black marketing, authorities have conducted nearly 2,900 raids, seizing around 1,000 cylinders. States have been directed to enhance monitoring, counter misinformation and fast-track approvals for gas infrastructure.

The government reiterated that there is no need for panic buying and assured that all necessary steps are being taken to maintain steady fuel and gas supplies.