India isn’t considering releasing crude from its strategic petroleum reserves as commercial inventories remain adequate and alternative supplies have started to arrive, according to a government official.
The South Asian nation also has no plans to curb fuel exports by refiners, seeing no immediate need to build additional stockpiles, the official said, asking not to be identified because of the sensitivity of the matter.
Group of Seven finance ministers are set to discuss a potential coordinated release of oil reserves as conflict in the Middle East disrupts regional flows and pushes up prices. Any move would be coordinated with the Paris-based International Energy Agency, Bloomberg reported earlier Monday.
India’s oil ministry has recently discussed global stockpile levels with the IEA and OPEC, the official said. State-run Indian Strategic Petroleum Reserve Ltd., which manages the country’s emergency crude inventories, held about 30 million barrels as of last month — roughly 77% of total capacity — the ministry told Parliament. India is an associate member of the IEA.
The world’s third-largest oil consumer, which sources about 40% of its crude imports through the Strait of Hormuz, has secured alternative supplies, the official said. Traffic through the chokepoint has slowed sharply since the US and Israel launched military action against Iran, prompting retaliatory attacks by Tehran on vessels in the waterway. The strait accounts for roughly a fifth of global oil flows.
While alternative cargoes are being procured at a premium, retail fuel prices won’t be raised as Prime Minister Narendra Modi’s government seeks to shield consumers from volatility, the official said.
Although pump prices in India are officially deregulated, refiners haven’t revised rates since mid-March 2024. The companies are financially strong enough to absorb losses on fuel sales, having maintained retail prices when crude declined previously, the official said.
There are no shortages of transport fuels or cooking gas, the official added, though the government is taking steps to discourage hoarding and moderate consumption. The waiting period for refilling liquefied petroleum gas cylinders has been extended to 25 days from 21 days.
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