Government asks state fuel retailers to build LPG reserves for 30 days of demand

PTI, May 29, 2026, New Delhi : The government has asked state-run fuel retailers to expand liquefied petroleum gas (LPG) storage capacity to cover at least 30 days of demand, a senior oil ministry official said on Friday, as supply disruptions linked to the West Asia conflict highlight the need for larger reserves.

"We are working on the strategic reserves. Oil marketing companies have been asked to work out (a plan) to have LPG reserves for a minimum of 30 days with them, and they are working on it," Sujata Sharma, Joint Secretary in the Petroleum Ministry, told reporters.

The government has asked state-run oil marketing companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) to prepare plans for the additional storage over and above regular commercial inventories.

The war in West Asia disrupted global energy supplies, including those to India. India's 40 per cent of crude imports, 65 per cent of natural gas and 90 per cent LPG supplies that came from countries in the Gulf region were disrupted due to the three-month-long conflict.

While it has been able to source crude oil (raw material for making petrol and diesel) and natural gas (used to generate electricity, make fertiliser and turned into CNG to run automobiles, as well as piped to household kitchens for cooking), the disruption in LPG supplies led to regulating supplies to commercial users.

Sharma said India was also working to increase crude oil storage capacity. She did not give details.

The government said the country has sufficient stocks of petrol, diesel, LPG, crude oil and natural gas, adding that refineries were operating at optimum levels and LPG production was at an all-time high of around 52,000 tonnes per day.

"No dry out reported at any LPG distributorship," Sharma said, while adding that "abnormal sale is being observed at many petrol pumps".

She said higher retail fuel sales were being driven partly by agricultural demand and by a shift in purchases from bulk buyers and private fuel retailers to state-run outlets due to the price difference.

More than 150 districts have recorded over 30 per cent growth in petrol sales, with 14 districts seeing sales double, Sharma said.

Diesel sales rose more than 30 per cent in 156 districts, while six districts reported growth of over 100 per cent.

Sales by private fuel retailers have fallen 38 per cent for diesel, while state-run oil marketing companies have seen bulk diesel sales decline 29 per cent, she added.