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BackIndian Government Assures Fuel Supply Stability Amid Middle East Conflict
Indian Government Assures Fuel Supply Stability Amid Middle East Conflict
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Times of India5/2/2026Business3 min readIndia

Indian Government Assures Fuel Supply Stability Amid Middle East Conflict

Ministry of Petroleum and Natural Gas urges public to avoid panic buying as supply chains remain operational

Quick Look

The Indian government has assured citizens of uninterrupted fuel supplies, citing adequate reserves and fiscal measures to mitigate the impact of rising global crude prices caused by the ongoing Middle East conflict.

AI-generated summary

Why It Matters

The ongoing conflict in the Middle East, which began in late February 2026, has disrupted global energy supply chains and increased crude oil prices.

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The government on Saturday soothed concerns over fuel availability across the country, assuring that it has taken measures to ensure an uninterrupted supply and has stepped up contingency arrangements across key sectors. This comes as the world’s energy pipeline continues to be disrupted due to the Middle East war, that began back on February 28.

In a statement, the ministry of petroleum and natural gas said that supply chains for essential fuels remain fully functional. It said, "Despite the ongoing geopolitical situation, the Government has ensured that 100% supply is being made to Domestic LPG, Domestic PNG and CNG (Transport)."

The ministry also urged citizens not to respond to rumours or engage in panic buying. "Citizens are advised to avoid panic purchase of petrol, diesel and LPG as the Govt is making all efforts to ensure availability," it said, adding that people should "beware of rumours and rely on official sources for correct information."

On domestic LPG distribution, the government said household supply has been given top priority. "Supply of LPG to domestic households has been prioritised," the ministry said, while also noting that "no dry-outs have been reported at LPG distributorships." To balance demand, authorities have rolled out measures such as extending LPG booking intervals and encouraging use of alternative fuels. "Alternate fuels such as kerosene and coal have been made available to ease pressure on LPG demand," the ministry said.

The government said refinery operations continue at full strength with sufficient reserves. "All refineries are operating at high capacity with adequate crude inventories, while sufficient stocks of petrol and diesel are being maintained," it said.

In response to rising global crude prices triggered by the West Asia situation, the government has also taken fiscal steps. The ministry said the "Middle East crisis has led to an abnormal increase in crude prices; however, to protect consumers, the Government of India has reduced excise duty on petrol and diesel by Rs 10 per litre." Changes have also been made to export levies. The statement said the government "reduced the export levy on diesel from Rs. 55.50 per litre to Rs. 23 per litre and on ATF from Rs. 42 per litre to Rs. 33 per litre."

While acknowledging that geopolitical tensions are affecting LPG supply, the ministry said steps have been taken to reduce disruption and maintain distribution stability. The government also highlighted its push towards cleaner energy. Since March 2026, it said, "about 5.96 Lakh PNG connections have been gasified... taking the total to 8.64 lakh connections," and added that "about 6.66 Lakh customers have been registered for new connections."

Separately, the Ministry of Ports, Shipping and Waterways said maritime operations remain stable. It said, "All Indian seafarers in the region are safe, and no incident involving Indian-flagged vessels has been reported in the past 24 hours." It also confirmed ongoing evacuation efforts, stating that "the safe repatriation of more than 2,922 Indian seafarers" has been carried out so far. Reiterating its assurance on fuel availability, the government said stocks remain sufficient nationwide and urged the public to stay calm, stating that "there are adequate stocks of petrol and diesel available at all Petrol Pumps in the country."

What to Watch

AI outlook — possibilities, not facts

  • Continued government monitoring of fuel prices and supply levels.

    Very likely · Within weeks

  • Potential further adjustments to export levies if global crude prices remain high.

    Likely · Within months

Open Questions

  • How long will the reduced excise duties remain in effect?
  • Are there specific contingency plans if the conflict escalates further?

Related Topics

This article was originally published by Times of India.

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