The Centre has directed state-run fuel retailers Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd to expand liquefied petroleum gas storage and prepare for reserves that can cover at least 30 days of demand.
Petroleum ministry joint secretary Sujata Sharma said on Friday that the companies had been asked to work out a plan for minimum 30-day LPG reserves, adding, “We are working on the strategic reserves.”
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VIDEO | Delhi: Joint Secretary, Ministry of Petroleum and Natural Gas, Sujata Sharma, at an inter-ministerial briefing, says, “We have sufficient stocks of petrol, diesel, and LPG. Adequate inventories of natural gas and crude oil have also been secured. All our refineries are… pic.twitter.com/BPmBxxSyy7
— Press Trust of India (@PTI_News) May 29, 2026
West Asia tensions and supply concerns
The move comes against the backdrop of the conflict in West Asia and concerns that any disruption around the Strait of Hormuz could hit India’s energy supply chain.
India sources about 40% of its crude imports, 65% of its natural gas and 90% of its LPG supplies from Gulf countries, leaving LPG particularly exposed to regional instability. The ministry has asked the oil firms to build additional storage capacity over and above regular commercial inventories.
India has directed IOC, BPCL, and HPCL to build LPG storage to cover at least 30 days of demand, citing supply disruption risk from West Asia conflicts.
LPG is not LNG. The relevant read-across here is VLGCs out of the Persian Gulf and spot propane/butane pricing in Asian… pic.twitter.com/LPXzCRSJzp
— Energy Flux (@EnergyFluxNews) May 29, 2026
Plenty in the pantry, for now
Officials have said India still has adequate stocks of petrol, diesel, LPG, crude oil and natural gas, and that domestic refineries are operating at optimum levels.
Sharma said LPG production has reached an all-time high of around 52,000 tonnes a day. The government has also said there has been no disruption at any LPG distributorship, even as it tracks rising fuel purchases in several parts of the country.
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A brisk rush to the pumps
The urgency around stock building also comes as fuel sales have surged in several districts.
According to the Hindustan Times report, more than 150 districts have recorded over 30% growth in petrol sales, while 14 districts have seen sales more than double.
Diesel sales have risen by over 30% in 156 districts, with six districts reporting growth of more than 100%.
Sharma said the spike was being driven partly by agricultural demand and a shift in purchases from bulk buyers and private fuel retailers to state-run outlets because of price differences.
The government has advised states and Union territories to set up special enforcement squads to prevent hoarding and black marketing, and has urged consumers not to panic-buy fuel.
