Govt Says Fuel Stocks Adequate, Urges Conservation as Iran War Strains Economy

India has sufficient fuel and fertiliser supplies, and there is no need for panic buying, the government said on Monday, even as it stepped up calls for fuel conservation and warned of mounting economic costs from the prolonged conflict in West Asia. 

Defence Minister Rajnath Singh, chairing a ministerial review meeting on the crisis, said India held crude oil stocks for 60 days, natural gas supplies for 60 days and LPG inventories for 45 days. The government also said foreign exchange reserves stood at $703 billion and stressed that domestic fuel supplies remained uninterrupted despite elevated crude prices.

The remarks came a day after Prime Minister Narendra Modi appealed to citizens to cut petrol and diesel consumption, avoid non-essential foreign travel and postpone discretionary gold purchases for a year, signalling rising concern within the government over the economic fallout from high oil prices and supply chain disruptions linked to the West Asia conflict.

India’s oil marketing companies are currently absorbing losses of nearly ₹10 billion a day, with under-recoveries estimated at close to ₹2 trillion in the first quarter of 2026, according to the government. Retail fuel prices have remained unchanged for more than 70 days despite the global surge in crude prices.

The government said the current conservation drive was aimed at “long-run capacity building” if the crisis persisted, rather than responding to any immediate shortage. Ministers were also asked to institutionalise fuel efficiency measures, public awareness campaigns and responsible consumption practices.

The review meeting discussed broader contingency planning, including supply-chain resilience, maritime trade security and diversification of energy sources. Singh said India needed to accelerate renewable energy adoption, reassess strategic reserve requirements and strengthen crisis preparedness mechanisms.

The government also highlighted emergency support measures for industry, including a ₹2.55 trillion Emergency Credit Line Guarantee Scheme for MSMEs and airlines, and force-majeure relief in public procurement contracts affected by the conflict.

Separately, the government said fertiliser availability remained “robust”, with total stocks at 199.65 million tonnes, higher than a year earlier and well above normal pre-kharif levels.