India is taking active steps to ensure that volatility in global energy markets does not result in higher fuel costs for domestic consumers. Government sources stated that petrol and diesel prices will remain unchanged despite supply disruptions caused by escalating tensions in the Middle East. Authorities said multiple measures are being implemented to shield consumers from fluctuations in international crude oil and LPG prices, while the Centre continues to coordinate closely with global oil suppliers and monitor developments on a daily basis.
Officials explained that LPG pricing in India is linked to the Saudi Contract Price benchmark, which has witnessed a sharp rise over the past two months. Despite this increase, the government has absorbed a significant portion of the cost pressure to prevent the burden from being passed on to households. Domestic LPG currently costs oil marketing companies about ₹1,050 per cylinder, resulting in ongoing losses on household cylinder sales. Protecting consumers from sudden price shocks remains a key priority.
The government also confirmed continued relief for beneficiaries of the Pradhan Mantri Ujjwala Yojana. Eligible households will keep receiving a subsidy of ₹300 per cylinder, ensuring the effective price for beneficiaries stays around ₹613 per cylinder and remains affordable for economically vulnerable families. Officials added that LPG prices have increased only moderately over the long term, rising from roughly ₹500 in 2014 to about ₹610 in 2026, reflecting an increase of around ₹110 over a 12-year period.
Authorities emphasized that domestic LPG availability remains adequate, with sufficient stocks to meet national demand. The government is also engaging multiple international suppliers to secure additional supplies if needed. An Inter-Ministerial Group has been tasked with closely monitoring the situation and reviewing supply priorities to ensure uninterrupted distribution across the country.
Officials noted early indications that global conditions may begin stabilizing. Iran has issued a constructive statement regarding the ongoing conflict, and the US International Development Finance Corporation has announced a $20 billion reinsurance support package aimed at stabilizing global shipping and trade flows. Implementation frameworks for this support are currently under discussion.
The Centre reiterated that India will continue sourcing crude oil from the most competitive markets, particularly as geopolitical tensions persist around the strategically important Strait of Hormuz due to the conflict involving Iran, the United States, and Israel. Officials highlighted that India has expanded its crude procurement network from 27 countries to nearly 40, reducing the risk of supply disruptions through diversified sourcing.
India also confirmed the continuation of crude oil imports from Russia, supported by a temporary waiver granted by the United States amid the Middle East crisis. Russia remains India’s largest crude supplier, with imports rising substantially since 2022 due to discounted pricing and strong refinery demand. The government reaffirmed that securing energy supplies remains a sovereign priority and does not require external approval.
Officials further stated that India maintains strong strategic petroleum reserves and supply buffers. The country currently holds more than 250 million barrels of crude oil and petroleum products across strategic reserves and commercial supply chains, providing a cushion equivalent to approximately seven to eight weeks of consumption.
India’s refining capacity stands at about 258 million metric tonnes per year, exceeding present domestic demand and offering additional flexibility to manage potential supply disruptions. Despite ongoing global uncertainties in oil markets, the government maintained that petrol and diesel prices will remain stable, while subsidies and supply management measures will continue to keep household LPG affordable.
