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India Keeps Fuel Flowing by Tapping Reserves and New Suppliers

Officials say about 76–80 days of fuel cover plus faster domestic LPG output and rerouted imports have so far prevented shortages.

Image
A worker waits for customers at a gasoline station in Shanghai, China, on March 27, 2026.
A photo illustration shows a person in front of a large screen displaying vessel movements in the Strait of Hormuz on a ship-tracking website on May 4, 2026.

Overview

  • A disruption of shipping through the Strait of Hormuz cut Gulf flows of crude, LPG and LNG, forcing New Delhi to respond to an acute energy shock.
  • The government says India holds roughly 76–80 days of fuel cover made up of strategic reserves, refinery inventories and commercial stocks that have eased immediate supply pressure.
  • New Delhi rapidly diversified imports and logistics, securing LPG and LNG cargoes from the United States, Canada, Algeria and others while increasing domestic LPG production by more than 60 percent.
  • May ship‑tracking data showed overall LNG arrivals rebound to near pre‑crisis volumes with US shipments rising sharply to become the largest monthly LNG source for India.
  • Ministers and analysts warn that inventories and alternative suppliers are temporary buffers and that a prolonged closure of Hormuz or wider escalation would sharply raise prices and economic strains.