No fuel shortage, but OMCs absorbing ₹1,000 cr daily losses: Govt explains PM Modi's appeal

India has ample stocks of crude oil, natural gas and cooking gas and there is no shortage of any petroleum product despite the ongoing conflict in West Asia, the government said on Monday, urging people to remain calm and avoid panic buying.

Chairing the fifth meeting of the Informal Group of Ministers (IGoM) on West Asia, Defence Minister Rajnath Singh said the government's primary focus is to ensure uninterrupted energy supplies, maintain economic stability and keep maritime trade routes secure.

"The country is secure and there is no shortage of any petroleum product," an official statement said after the meeting.

According to the government, India currently has 60 days of crude oil stocks, 60 days of natural gas supplies and 45 days of LPG rolling stock.

The meeting was attended by Union ministers J. P. Nadda, Hardeep Singh Puri, Ashwini Vaishnaw, Kiren Rijiju, K. Rammohan Naidu, Sarbananda Sonowal and Jitendra Singh.

The government said India's foreign exchange reserves stood at a comfortable USD 703 billion and that the country, the world's third-largest oil refiner and fourth-largest exporter of petroleum products, continues to fully meet domestic fuel demand.

“But there is a huge cost being borne by the nation as international crude prices are continuing at very high levels. Fuel conservation can ease this burden,” the statement said, reiterating Prime Minister Narendra Modi’s appeal to adopt fuel saving measures.

State-owned oil marketing companies have absorbed losses of nearly ₹1,000 crore per day to keep retail fuel prices unchanged, with under-recoveries estimated at around ₹2 lakh crore in the first quarter of 2026-27, the statement said.

"There is no reason for anxiety and no reason for citizens to rush to retail outlets," it added.

The ministers were also informed that essential commodities and fertilisers are available in surplus and that the current conservation measures are aimed at strengthening long-term resilience in case the geopolitical crisis persists.

The IGoM was informed that fertiliser stocks stood at 199.65 lakh tonnes as of May 11, significantly higher than the usual level for this time of year and sufficient to meet more than half of the estimated Kharif 2026 requirement of 390.54 lakh tonnes.

On Sunday, PM Modi urged citizens to reduce petrol and diesel consumption by using public transport and carpooling, avoid non-essential foreign travel, postpone overseas vacations and destination weddings, and defer non-essential gold purchases for one year to conserve foreign exchange.

He also called on farmers to cut chemical fertiliser use by half, adopt natural farming and switch to solar-powered irrigation pumps.

In a post on X after the meeting, Rajnath Singh said all concrete steps were being taken to prevent shortages and supply chain disruptions and urged citizens to remain calm.

The defence minister also stressed the need to diversify energy sources, expand renewable energy, reassess strategic reserve requirements and strengthen preparedness through early warning systems and scenario planning.