Hardeep Singh Puri Says No Fuel Shortage, Signals Possible Rise In Petrol And Diesel Prices

Union Petroleum and Natural Gas Minister Hardeep Singh Puri on May 12 said there is no shortage of fuel in India and the country currently has adequate reserves of crude oil, LNG and LPG despite rising global energy prices linked to the ongoing West Asia conflict.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Speaking at the CII Annual Business Summit 2026, Puri said India has increased LPG production capacity to 54,000 tonnes from around 35,000 tonnes earlier.

The minister also indicated that fuel prices could increase in the coming days as state-run oil marketing companies continue to absorb losses caused by elevated crude oil prices.

“We haven’t raised prices for the last four years. I’m not saying prices will not go up. I’m saying prices and elections are unrelated,” Puri said during the summit.

India Has Adequate Fuel Stocks

Puri said India currently holds enough reserves to manage supply disruptions. According to the minister, the country has 60 days of crude oil reserves, 60 days of LNG stocks and 45 days of LPG reserves.

He added that the government has restored gas supplies to almost all sectors and there is no supply disruption across the country.

The minister’s remarks came amid concerns around rising crude oil prices and tensions involving the U.S. and Iran, which have disrupted global energy markets and increased pressure on oil-importing nations.

OMCs Facing Losses Amid Rising Crude Prices

Puri said state-run oil marketing companies are currently absorbing losses to protect consumers from higher fuel prices.

According to the minister, oil companies are incurring losses of up to ₹1,000 crore per day as they continue selling petrol, diesel and LPG at lower prices despite higher import costs.

Data from the Petroleum Planning and Analysis Cell showed that the average crude oil import price increased to $104.68 per barrel in May, compared with $69.01 per barrel in February before the escalation of the West Asia conflict.

Puri said profits earned by oil companies in the previous year are being impacted by current losses linked to higher crude prices.

Government Expanding Strategic Fuel Reserves

The minister also said the government is working to increase India’s strategic storage capacity for crude oil, LPG and gas.

According to Puri, India currently has around 76 days of crude oil holding capacity, while the International Energy Agency recommends maintaining 90 days of reserves.

He added that discussions between the finance ministry and the petroleum ministry regarding allocations under the Samudra Manthan scheme are in the final stages.

Puri said the government is also focusing on increasing domestic exploration and production of oil and gas as global energy uncertainty continues due to the prolonged conflict involving the U.S. and Iran.