New Delhi, India — April 9, 2026
Global crude oil prices have surged close to the $100 per barrel mark amid escalating geopolitical tensions in West Asia, particularly involving Iran and Israel, raising concerns over energy security and inflation in import-dependent economies like India.
India, which imports nearly 85–88% of its crude oil requirements, is closely monitoring the situation. Despite the sharp rise in global oil prices, the government has assured citizens that domestic LPG (cooking gas) supply remains stable and fully secure.
Government Assures Uninterrupted LPG Supply
Officials from the Ministry of Petroleum stated that there is no shortage of LPG across the country, and proactive steps have been taken to ensure uninterrupted availability.
Key measures include:
- Boosting domestic production: Refineries have been directed to maximize LPG output for household consumption.
- Priority distribution: Supply is being prioritized for homes, hospitals, and educational institutions.
- Secured shipping routes: Oil tankers are being escorted under naval protection to ensure safe passage to India.
- Controlled booking system: A mandatory 25-day gap between LPG refill bookings has been introduced in urban areas to prevent hoarding and panic buying.
Authorities have urged the public to avoid rumors and unnecessary bulk bookings, emphasizing that sufficient stock is available nationwide.
Rising Oil Prices and Government Relief Measures
The spike in crude oil prices—currently estimated between $100 and $115 per barrel (Brent crude)—poses inflationary risks. However, the government has introduced measures to cushion the impact on consumers.
- Fuel tax cuts: Excise duty on petrol has been reduced by ₹10–13 per liter, while diesel has seen a ₹10 cut.
- Subsidy support: The government has approved ₹30,000 crore in compensation for Oil Marketing Companies (OMCs) to offset losses and maintain stable retail prices.
- Export controls: Additional duties have been imposed on diesel and aviation turbine fuel (ATF) exports to ensure adequate domestic supply.
Key Risks: Inflation and Strategic Routes
Economists warn that every $10 increase in crude oil prices could raise India’s inflation rate by up to 0.60%, potentially affecting household budgets and economic growth.
A major concern remains the Strait of Hormuz, through which nearly 40% of India’s oil imports pass. Any disruption in this critical shipping route could further escalate supply risks and prices.
Current Market Snapshot
- Crude Oil (Brent): $100–$115 per barrel
- Domestic LPG (14.2 kg cylinder): ₹913 (Delhi benchmark)
- Supply Status: Stable, no reported shortages
Outlook
While global uncertainty continues due to geopolitical tensions, India’s multi-pronged strategy—ranging from supply management to fiscal relief—aims to shield consumers and maintain energy stability.
Authorities reiterated that there is no immediate risk of fuel shortages, and the situation remains under close monitoring.
