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India Has Not Decided To Curb Refined Oil Exports Amid West Asia Crisis: Govt Sources

2 months ago 12

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Last Updated:March 10, 2026, 18:22 IST

On LPG, the government said oil marketing companies- IndianOil, HPCL and BPCL- would hold direct talks with restaurant associations to understand their supply problems.

The government pushed back firmly against suggestions that India was in the grip of a fuel crisis.

The government pushed back firmly against suggestions that India was in the grip of a fuel crisis.

The Indian government ruled out curbing exports of refined petroleum products and said it was not facing a fuel crisis, even as it moved to set up a dedicated committee to address a commercial LPG shortage hitting the hospitality sector.

“We have not taken any decision on refined oil export curb," government sources told ANI. On LPG, officials announced that a three-member committee comprising Executive Directors of IndianOil, HPCL and BPCL has been formed to hear grievances from commercial users- including restaurants and hotels- and reprioritise supply based on genuine need. The oil marketing companies will also hold direct talks with restaurant associations to better understand the ground situation.

Read more: Govt Sets Up IOC-HPCL-BPCL Panel To Review Commercial LPG Supply Issues: Report

The reprioritisation has already produced results, officials said, with domestic LPG production rising 10 percent over the past few days. Fresh consignments of LPG and LNG from multiple sources are expected to arrive shortly.

The government was categorical that India’s broader fuel situation remains under control. “We were in crisis earlier but today we are not in any crisis of petroleum products," sources said, adding that Indian refineries are running at full capacity- unchanged from levels before the West Asia conflict began.

With 70 percent of crude oil now sourced from suppliers outside the Strait of Hormuz, officials said advance diversification had put India in a stronger position than most.

Read more: India Boosts LPG Production By 10% As Supplies Stabilise After Hormuz Disruption: Report

“We entered this disruption better prepared," a source said, adding India was expected to recover faster than other countries once the crisis passed.

State-run energy companies backed up the government’s message as HPCL and IndianOil both said steps had been taken to boost LPG output, with households and essential services- hospitals and schools- given priority. Commercial users in other sectors were directed to submit requests to the Executive Director committee for review.

For piped gas consumers, Indraprastha Gas Limited said domestic PNG supply was being prioritised with government support, while Mahanagar Gas Limited said household PNG demand across Maharashtra was being met entirely from domestically produced gas, insulating it from global supply volatility.

Location :

Delhi, India, India

First Published:

March 10, 2026, 18:08 IST

News india India Has Not Decided To Curb Refined Oil Exports Amid West Asia Crisis: Govt Sources

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