Lok Sabha Question No. 4427 (UNSTARRED), answered on 2026-03-19
Subject: Global Oil Price Volatility
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Thiru Dayanidhi Maran

## LOK SABHA UNSTARRED QUESTION NO. 4427 TO BE ANSWERED ON 19 th  March 2026

## Global Oil Price Volatility

## 4427. THIRU DAYANIDHI MARAN :

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the concrete steps taken by the Union Government to shield Indian consumers from crude oil price shocks arising from the volatile geopolitical situation in the Middle East including the use of strategic petroleum reserves and diversification of sourcing;
- (b)  whether  the  Government  has  reviewed  its  excise  duty  and  pricing  policy  to  prevent disproportionate  retail  fuel  price  hike  during  periods  of  global  instability,  if  so,  the  details thereof,
- (c) the present status of India's Strategic Petroleum Reserves, including stock levels, drawdown protocols and replenishment plans in the event of supply disruptions;
- (d)  the  measures  taken  by  the  Government  to  diversify  sources  of  imports  and  reduce overdependence on any single region vulnerable to conflict; and
- (e)  whether  the  Government  has  prepared  a  transparent  contingency  framework  to  stabilise domestic LPG, petrol and diesel prices in the event of prolonged tensions in the Middle East, if so, the details thereof?

## ANSWER

## पेᮝोिलयम और ᮧाकृ ितक गैस मंᮢालय मᱶ रा᭔यमंᮢी ( ᮰ी सुरेश गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

- (a)  to  (e)  Government,  through  a  Special  Purpose  Vehicle  called  Indian  Strategic  Petroleum Reserve Limited (ISPRL), have established Strategic Petroleum Reserves (SPR) facilities with total  capacity  of  5.33  Million  Metric  Tonnes  (MMT)  which  can  act  as  buffer  for  short-term supply shocks. In order to check the preparedness of running and standby equipment, fluidity of crude oil and readiness for drawdown, monthly circulation of crude oil is being done by ISPRL on regular basis for all caverns at all locations.

Further, to ensure security of crude supplies and to mitigate the risk of dependence on crude oil from single region, Oil and Gas Public Sector Enterprises (PSEs) which are Board run entities source crude oil from diverse sources depending on their technical and commercial considerations. Currently, these PSEs import crude oil from 41 countries including new suppliers like  USA,  Nigeria,  Angola,  Canada,  Columbia,  Brazil  and  Mexico  in  addition  to  traditional suppliers in the Middle East such as Iraq, Saudi Arabia, UAE, Kuwait and Qatar.

Prices of petrol and diesel in the country are market-determined and the PSEs take appropriate decision on pricing of petrol and diesel. India imports majority of its crude oil requirements and prices  of  petroleum  products  in  India  are  linked  to  international  markets.  Despite  volatility  in global crude/petroleum prices, PSU OMCs have kept retail petrol and diesel prices stable.

Government  makes  fiscal  interventions,  whenever  necessary,  to  calibrate  the  tax  structure applicable for petroleum products.

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