Page 43 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Key Policy developments/Significant news in Energy sector

India Fully Prepared Amid Evolving Situation in the Middle East – Energy Supplies Robust

Following the outbreak of hostilities in the Middle East and the evolving global energy situation, Shri
Hardeep Singh Puri, Minister of Petroleum & Natural Gas, briefed the media on the country’s
preparedness in the current circumstances.

It was informed that India is the third largest importer, fourth largest refiner, and fifth largest exporter
of petroleum products globally. The country is well stocked with crude oil and inventories of key
petroleum products including petrol, diesel and ATF to deal with short-term disruptions arising from the
Middle East.

It was further apprised that in the last few years, India has ensured both availability and affordability of
energy for its population by diversifying its sources. Indian energy companies now have access to energy
supplies that are not routed through the Strait of Hormuz. Such cargoes will remain available and help
mitigate supplies that may be temporarily affected enroute through the Strait of Hormuz.

The Ministry has established a 24×7 Control Room to continuously monitor the supply and stock position
of petroleum products across the country. At present, the Government is reasonably comfortable in
terms of stocks. Safeguarding the interests of Indian consumers remains the highest priority. Based on
continuous monitoring, the Government is cautiously optimistic that phased measures can be taken, if
required, to further mitigate the situation.

Measures Taken to Address Global Energy Supply Disruptions Arising from the Conflict in West Asia-
Union Minister for Petroleum and Natural Gas Shri Hardeep Singh Puri in Parliament

Union Minister for Petroleum and Natural Gas Shri Hardeep Singh Puri made a statement in the Lok
Sabha informing the House about the steps taken by the Ministry of Petroleum and Natural Gas in
response to the disruption to global energy supply arising from the ongoing conflict in West Asia. The
Minister apprised the House of the measures being undertaken to ensure the continued availability of
petroleum products and to safeguard India’s energy security in the evolving global situation.

1. The world has not faced a moment like this in modern energy history. Today is the 13th day since the
passage through the Strait of Hormuz, through which 20% of world’s crude, 20% of world’s natural gas
and 20% of the world’s LPG flows, was disrupted following the military operation between Iran, Israel,
and the US. For the first time in recorded history, the Strait of Hormuz has been effectively closed to
commercial shipping. Despite India having no role in causing the conflict, like many countries, India has
to navigate through its consequences.

2. The contrast with how other nations are managing this crisis places India’s response in its sharpest
relief. A country in our neighbourhood has shut all schools for two weeks, moved government offices to
a four-day work week, ordered 50 per cent of public employees to work from home, cut fuel allowances
for official vehicles by half, and taken 60 per cent of government vehicles off the road. This country has
experienced the largest single fuel price increase in its history, with petrol up approximately 20 per cent

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