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New Delhi: Indian Oil Corporation has assured consumers that India currently faces no immediate shortage of crude oil or cooking gas despite escalating tensions in West Asia disrupting global energy supply chains.

The country’s largest fuel retailer said it continues to maintain more than one month of crude oil inventory, while Liquefied Petroleum Gas (LPG) availability, although under pressure, remains sufficient across India through diversified sourcing strategies.

The statement came during the company’s post-earnings conference call amid rising concerns over the impact of geopolitical tensions in the Gulf region on India’s fuel security and energy imports.

Gulf tensions raise concerns over energy supplies

The ongoing instability in West Asia, particularly around the Strait of Hormuz, has triggered concerns globally due to the route’s strategic importance for crude oil and gas shipments.

India imports a significant portion of its crude oil and LPG requirements from Gulf countries, making the region critical for domestic energy supplies.

According to Indian Oil, nearly half of India’s crude oil imports and around 90 per cent of LPG supplies sourced from Gulf nations could potentially be affected by disruptions in the region.

Despite these challenges, the company said there is currently no shortage of crude oil or LPG in the country.

“We don’t have any shortage of either crude oil or LPG,” the company said during the conference call.

Officials added that crude oil inventories remain stable and are being maintained at levels sufficient for more than a month of operations.

Refineries operating at full capacity

Indian Oil said all its refineries have continued functioning at full capacity despite geopolitical uncertainties and supply chain concerns.

According to Anuj Jain, India’s diversified sourcing model has helped the company maintain uninterrupted crude oil supplies even during periods of global instability.

He stated that crude oil procurement is supported by multiple international sources, reducing dependence on any single region.

“As far as supply of crude oil and other petroleum products are concerned, diversified sources are available, and all our refineries are operating at full capacity,” Jain said.

The company noted that global energy markets have historically adjusted to disruptions through alternative trade routes and sourcing arrangements, helping maintain supply continuity.

LPG sourcing shifted to alternative markets

While crude oil availability remains relatively stable, Indian Oil acknowledged that LPG supplies have experienced tighter conditions due to reduced inflows from Gulf suppliers.

To address the situation, the company said it has diversified LPG procurement by sourcing fuel from countries including Indonesia, Nigeria, Angola and Oman.

Officials stated that these alternative supply arrangements have helped ensure adequate LPG availability across India despite logistical and geopolitical challenges.

Indian Oil admitted that LPG inventories have reduced compared to normal levels but emphasised that contingency measures are currently sufficient to meet nationwide demand.

The company added that efforts are ongoing to strengthen supply resilience and avoid disruptions in household LPG distribution.

Refining margins expected to remain high

Indian Oil also indicated that global refining margins are likely to remain elevated over the next one to two years due to continuing geopolitical uncertainties and disruptions affecting global energy infrastructure.

The company referred to multiple international conflicts, including Russia-Ukraine tensions and instability involving Iran and the United States, as major factors impacting refining and upstream energy assets globally.

According to company officials, these disruptions are expected to keep refining profitability relatively strong in the near future.

“The world definitely will be facing cycles of high refining margins going forward,” the company said during the conference call.

Industry experts have also noted that geopolitical instability often leads to higher crude prices, freight costs and refining margins due to supply uncertainty and increased insurance expenses for maritime transport routes.

Indian Oil plans higher capital expenditure

Alongside its operational update, Indian Oil announced an ambitious capital expenditure plan for the financial year 2026-27.

The company plans to invest approximately Rs 32,700 crore during the fiscal year, slightly higher than the Rs 31,401 crore spent in the previous year.

The investments are expected to focus on refinery expansion, infrastructure upgrades, energy transition projects and strengthening supply networks.

Indian Oil also confirmed that the expansion of its Panipat refinery in Haryana is progressing as planned.

The refinery’s capacity is being increased from 15 million metric tonnes per annum (MMTPA) to 25 MMTPA, with completion expected by December 2026.

The expansion is aimed at improving domestic refining capacity and strengthening India’s long-term energy security.

India closely monitoring global energy situation

The developments come as India continues to closely monitor the evolving geopolitical situation in West Asia and its potential impact on global energy markets.

As one of the world’s largest importers of crude oil, India remains vulnerable to disruptions in international shipping lanes and fluctuations in fuel prices.

However, officials have repeatedly emphasised that diversified sourcing, strategic reserves and refining capacity expansions are helping improve the country’s ability to manage external supply shocks.

For now, Indian Oil has assured consumers that fuel and LPG supplies remain stable despite the ongoing global uncertainty surrounding energy trade routes.