‘India has 60 days of crude, 45 days of LPG’:Petroleum Minister urges people not to misread PM’s comments

Petroleum Minister Hardeep Singh Puri said on Tuesday that India currently has reserves of 60 days of crude oil, 60 days of LNG and 45 days of LPG. He said there is no issue with supply. Speaking at the CII Annual Business Summit in Delhi, Puri also referred to Prime Minister Narendra Modi’s recent appeal to save resources. He said there was no reason to create panic over the PM’s comments. “Listen carefully to what the PM said. Do not create false meanings from his words,” he added. For the past two days, PM Modi has repeatedly urged people to reduce fuel and resource use. He said people should cut petrol and diesel use where possible and instead use metro services, electric buses and public transport. He also advised people to avoid foreign travel for now. Hardeep Puri: Oil companies losing ₹1,000 crore every day Hardeep Singh Puri said the government has not allowed the burden of energy supply disruption caused by the West Asia crisis to fall on ordinary people. He said oil companies are currently losing around ₹1,000 crore every day, and total losses may soon reach ₹1.98 lakh crore. Puri said quarterly losses have already reached around ₹1 lakh crore. He questioned how long such losses could continue. He also pointed out that oil prices, which were earlier around $64-$65 per barrel, have now risen to nearly $115 per barrel. Puri: LPG production increased from 36,000 to 54,000 metric tonnes Hardeep Singh Puri said that around 20% of the world’s energy supply earlier passed through the Strait of Hormuz. Around 85% of India’s crude oil imports and nearly 60% of LPG imports came through that route. After the route was closed, India had to make alternative arrangements. Before the crisis, India’s domestic LPG production was around 35,000 to 36,000 metric tonnes per day. The country has now increased production to 54,000 metric tonnes daily. Puri described this increase as a major achievement. 7 Questions and Answers: 60 days of oil and gas stock, yet call for lower spending 1. How much reserve does the country have? India has underground crude oil storage facilities in Visakhapatnam, Mangaluru and Padur with a total capacity of 5.33 million metric tonnes (MMT). At present, these reserves are about 64% full, holding 3.37 MMT of crude oil, enough to meet around 9.5 days of demand. Together with oil company stocks and strategic reserves, India currently has 60 days of crude oil, 60 days of natural gas and 45 days of LPG reserves. 2. How much stock is considered sufficient? According to International Energy Agency standards, countries should keep reserves equal to at least 90 days of imports. India is slightly below this target, but experts say reserves for 60 to 74 days are still considered a safe level. 3. Then why is fuel conservation being encouraged? The PM’s appeal is not due to an oil shortage, but to save foreign currency reserves. India imports about 88% of its crude oil needs from abroad and pays in US dollars. Due to the war, oil prices have risen sharply, increasing pressure on India’s foreign exchange reserves. 4. Why was clarification issued the next day? After PM Modi’s comments about saving resources, panic buying reportedly started among some people. Many feared another lockdown or shortages at petrol pumps. To calm fears, the government clarified that there is currently enough fuel stock available. 5. How much oil does India use daily, and what does it cost? India uses around 5 million barrels of crude oil every day. Before the war, the country spent around $330 million (about ₹3,141 crore) daily on oil imports. That figure has now risen to about $500 million (around ₹4,760 crore) daily. This means India is now spending an extra ₹1,619 crore every day on oil imports. 6. Will petrol and diesel prices rise? Experts believe petrol and diesel prices may increase by ₹4 to ₹5 per litre around May 15 to reduce losses faced by oil companies. LPG cylinder prices may also rise by up to ₹50. 7. Has India faced such a crisis before? The biggest energy crisis came in 1991, when India had almost no oil storage capacity. During the COVID-19 period in 2021-22, the country’s strategic reserves also fell sharply.