West Asia crisis: India has enough fuel and fertiliser buffers, says government amid supply fears

The government on Friday sought to calm concerns over potential supply disruptions triggered by escalating geopolitical tensions in West Asia, asserting that India has sufficient reserves of both fuel and fertilisers to meet domestic demand in the near term.

In separate statements, the government said India has built enough buffers of crude oil, petroleum products and fertilizers, even as global supply chains face uncertainty linked to tensions around the Strait of Hormuz.

How secure are India’s fuel supplies?

According to the government, India currently holds more than 250 million barrels of crude oil and fuel stocks across strategic reserves, refinery storage and supply chains. This translates into a supply buffer of roughly seven to eight weeks, covering reserves stored in tanks, pipelines and vessels.

India’s refining capacity stands at about 258 million metric tonnes per annum (MMTPA), which exceeds domestic fuel demand and enables the country to export refined petroleum products.

Major refiners include Indian Oil Corporation, Reliance Industries, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited.

The government also said that no petrol pump in the country has run dry in the past 12 years, adding that retail petrol and diesel prices have remained broadly stable for several years.

Are fertiliser supplies adequate for the Kharif season?

The government also said fertiliser inventories are higher than last year, providing a strong buffer ahead of the upcoming Kharif season.

Total fertiliser reserves currently stand at 177.31 lakh metric tonnes (LMT) as of March 6, compared with 129.85 LMT a year earlier — a 36.5% increase.

Stocks include 59.30 LMT of urea, 25.13 LMT of di-ammonium phosphate (DAP) and 55.87 LMT of NPK fertilizers, according to official data.

To ensure continuity of supplies, India has already imported 98 LMT of finished fertilisers up to February 2026, with an additional 17 LMT shipments scheduled over the next three months.

Officials said fertiliser companies have secured long-term agreements with global suppliers for phosphatic and potassic fertilizers to reduce exposure to market volatility.

The government has also assured fertiliser manufacturers that natural gas supply for urea production will remain a national priority, even if global LNG markets tighten due to geopolitical developments.