The Union Ministry of Petroleum and Natural Gas has formally dismissed circulating reports of impending fuel rationing for petrol and diesel in India, stating that domestic production is self-sufficient and all supply points are fully stocked as of mid-March 2026.
Petroleum Minister Hardeep Singh Puri informed the Lok Sabha that there is no shortage of petrol or diesel in the country, according to reporting by The Hindu cited in the research documents. The minister characterised rationing rumours as “fake narratives” designed to promote hoarding behaviour. Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, separately stated that India is self-sufficient in the production of both petrol and diesel and that no imports of either fuel are required, according to the research documents. Government sources confirmed that all IndianOil terminals and supply points are well-stocked and that refineries are operating at 100% capacity or above.
Why Petrol and Diesel Are Insulated
Unlike LPG, India does not import petrol or diesel in meaningful volumes under normal market conditions. The country’s total refining capacity of 258 million metric tonnes per annum is sufficient to meet domestic demand for both fuels from domestically processed crude, according to the research documents. India is also a net exporter of Aviation Turbine Fuel (ATF), further insulating the domestic aviation sector from the Gulf supply disruption.
The government has diversified crude procurement to the United States, Norway, and Russia, among other sources, to compensate for reduced Hormuz transit volumes, according to Petroleum Ministry sources cited in the research documents. Government sources indicate that petrol and diesel retail prices are unlikely to increase unless Brent crude sustains a breach of $130 per barrel.
On LPG — the fuel most directly exposed to import dependency — the government is absorbing a portion of the international price increase. According to the research documents, while the market-determined price of a non-subsidised cylinder in Delhi reached ₹987, the government-controlled retail price stands at ₹913, representing a ₹74 per cylinder subsidy absorption. The government has not issued a formal notification specifying the duration or fiscal cost of this subsidy measure; those details remain to be confirmed through primary budget documentation.
