Kamal Ghorui
India has sufficient fuel inventories and there is no plan to ration petrol, diesel or LPG supplies despite continuing disruptions in global energy markets, Oil Secretary Neeraj Mittal said on Monday, PTI reported.Addressing the CII Annual Business Summit, Mittal said the country has maintained adequate fuel and LPG stocks during the ongoing West Asia crisis and has diversified imports to manage supply risks.“There is no need to panic. There are sufficient supplies. There is no rationing in place. It’s not going to happen,” Mittal said.He said India has maintained around 60 days of fuel inventories and nearly 45 days of LPG stocks over the past 67 days of market disruption.The remarks came a day after Prime Minister Narendra Modi urged fuel conservation, reduced imports and restraint in gold purchases amid pressure on India’s foreign exchange reserves from rising global energy prices.Mittal said the government has secured additional energy cargoes, increased procurement from alternative suppliers and absorbed part of the global price shock through excise duty cuts on petrol and diesel.India, the world’s third-largest oil importer and consumer, has also accelerated efforts to expand domestic oil exploration, strategic reserves and alternative fuel programmes including green hydrogen, ethanol blending and sustainable aviation fuel, he said.“For a country like India which consumes 5 million barrels a day, to have a 90-day reserve would be putting a lot of money in a box without using it at all,” Mittal said while discussing strategic reserves, PTI quoted.He added that the government was exploring “creative ways” to expand strategic reserves while generating returns from stored crude.Mittal said the government has spent the past 67 days managing supply disruptions arising from geopolitical tensions and shipping constraints in global energy markets.“The constraint has not changed at all. In fact, it is a shade worse,” he said.Despite the challenges, India managed to move all 14 of its ships out of the conflict-hit Strait of Hormuz, he added.The official said India’s large refining capacity had helped cushion supply shocks, enabling the country to meet domestic fuel demand while continuing exports of refined petroleum products.Mittal also highlighted demand-management measures adopted by the government, including prioritising LPG supplies for household cooking use.Following requests from industry, the government later allowed 70 per cent industrial LPG supplies as well.He said nearly 100 per cent digital tracking of LPG cylinder deliveries had helped curb diversion and black-market sales.“There is no need to panic. There’s sufficient supplies. There is no rationing in place. It’s not going to happen,” Mittal reiterated.On fuel prices, petrol and diesel continue to be sold at rates unchanged for nearly two years despite a sharp increase in international crude prices following the West Asia conflict.A top government source said the “default mode of the government is to keep the prices and supplies stable”.However, state-run oil marketing companies are estimated to be incurring daily losses of Rs 1,000 crore to Rs 1,200 crore because of rising input costs.Mittal said the Centre had absorbed a substantial part of the price burden through excise duty cuts on petrol and diesel, resulting in a revenue impact of around Rs 1.6 lakh crore.“Government uses all sorts of tools,” he said, adding that India had remained “a relative oasis of calm” compared with countries that imposed fuel rationing and stricter demand curbs during the crisis.
