Government sources say New Delhi will prioritise domestic energy security and LPG supplies as West Asia conflict pushes global crude prices higher.
India is unlikely to release crude oil from its strategic petroleum reserves as part of a coordinated effort by advanced economies to stabilise global oil markets, government sources said on Monday, emphasising that New Delhi’s energy strategy remains firmly guided by an “India First” approach.
The sources said India currently has no plans to contribute to a coordinated release of oil reserves led by the International Energy Agency and the G7, despite the sharp rise in global crude prices triggered by escalating tensions in West Asia.
Instead, officials indicated that India’s priority is to safeguard domestic energy security and ensure uninterrupted supply of critical fuels, particularly liquefied petroleum gas (LPG), amid growing volatility in global energy markets.
India has built strategic petroleum reserves with a total capacity of 5.33 million metric tonnes (MMT) through a special purpose vehicle, Indian Strategic Petroleum Reserve Limited (ISPRL). The reserves are stored across three key facilities located in Visakhapatnam (1.33 MMT), Mangaluru (1.5 MMT), and Padur (2.5 MMT).
Officials said the government is currently focused on strengthening domestic supply buffers rather than drawing down reserves to stabilise global markets.
Sources also pointed to rising domestic consumption patterns, particularly for LPG. According to officials, some consumers who previously booked LPG cylinders roughly every 55 days have begun placing orders within as little as 15 days, reflecting concerns over supply availability.
To address the situation, the government has instructed refineries to increase LPG production and prioritise supply for domestic households over commercial consumption.
“Domestic consumers will always be a priority,” a source said, adding that India is also exploring additional LPG supply partnerships with countries such as Algeria, Australia, Canada and Norway to diversify import sources.
Global crude prices have surged amid the ongoing conflict in West Asia, raising concerns about energy supply disruptions and broader market volatility.
Speaking in Parliament earlier in the day, External Affairs Minister S. Jaishankar said the developments in West Asia were a matter of deep concern. He noted that the latest round of hostilities began on February 28 and has involved not only direct fighting between Israel and the United States on one side and Iran on the other, but also attacks affecting several Gulf states.
The minister said India continues to advocate restraint and a return to diplomacy while prioritising the safety of its citizens in the region.
“We advocate de-escalation, restraint and ensuring the safety of civilians. The well-being and security of the Indian community in the region are our overriding priority,” Jaishankar said.
He added that India’s national interests, including energy security and trade flows, will remain paramount as the government monitors the evolving situation in the region.
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