New Delhi: India is weighing a range of contingency options including restricting petrol and diesel exports, increasing Russian crude imports , and introducing demand-management measures such as LPG rationing to address potential fuel shortages if traffic through the Strait of Hormuz remains disrupted for weeks, said people familiar with ongoing discussions between the government and industry.Oil and gas prices surged on Monday, with Brent crude futures rising nearly 10% to $80 a barrel and European gas jumping more than 40%, as the widening West Asia conflict and attacks on energy facilities including Saudi Arabia's Ras Tanura refinery and a Qatari LNG plant triggered production shutdowns.Tanker movement through the Strait remained sparse for the second day on Monday, heightening concerns over supply continuity and prompting officials and refiners to review fallback options. US president Donald Trump has, however, said the conflict in West Asia could last as much as four weeks.“We are continuously monitoring the evolving situation, and all necessary steps will be taken in order to ensure availability and affordability of major petroleum products in the country,” the oil ministry said on X after a review by oil minister Hardeep Puri.A key step being considered by the Indian government is curbing exports of petrol and diesel to boost domestic availability in an emergency, the people said.India exports about a third of its petrol, a quarter of its diesel, and about half of its aviation turbine fuel (ATF) output. In response, state-run refiners Indian Oil HPCL , and BPCL have begun increasing LPG output at select petrochemical integrated refineries.Targeted demand-management steps, including rationing LPG for customers with access to alternative fuels, particularly in rural areas, are also being discussed, people said.India’s crude reserves can cover about 17–18 days of consumption, refined fuels such as petrol and diesel about 20–21 days, and LNG about 10–12 days.
Author: Sanjeev Choudhary
Published at: 2026-03-03 00:00:00
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