India Assures No Fuel Shortage Amid West Asia Conflict as Rajnath Singh Chairs Emergency Preparedness Meeting

The review focused on assessing the latest geopolitical developments and ensuring India remains prepared for any escalation that could disrupt global energy supplies, trade routes or commodity markets.

Defence Minister Rajnath Singh chaired the fifth meeting of the Informal Group of Ministers (IGoM) on West Asia in New Delhi on 11 May 2026, as the Government intensified preparations to shield India's economy, energy security and supply chains from the growing fallout of the ongoing conflict in West Asia.

The high-level meeting, held at Kartavya Bhawan-2, brought together senior Cabinet ministers overseeing critical sectors including petroleum, chemicals, aviation, railways, shipping, technology and parliamentary affairs.

The review focused on assessing the latest geopolitical developments and ensuring India remains prepared for any escalation that could disrupt global energy supplies, trade routes or commodity markets.

India Says Fuel Supplies Remain Stable

During the meeting, ministers were informed that India currently faces:

No shortage of petroleum products

despite rising global energy volatility and emergency fuel conservation measures being introduced in several other countries.

Officials confirmed that India currently holds:

• 60 days of crude oil reserves

• 60 days of natural gas reserves

• 45 days of LPG rolling stock

In addition, India's foreign exchange reserves remain at a strong:

$703 billion

The government stressed that the country's energy system remains stable and fully capable of meeting domestic demand.

India currently remains:

• The world's third-largest oil refiner

• The fourth-largest exporter of petroleum products

• A supplier to over 150 countries worldwide

Officials said domestic fuel supply chains continue operating normally, and there is:

"No reason for anxiety or panic buying."

Oil Companies Absorbing Massive Losses to Protect Consumers

The government acknowledged, however, that India is bearing enormous financial costs due to soaring global crude oil prices linked to the prolonged conflict.

According to the briefing:

• Indian oil marketing companies are absorbing losses of nearly:

₹1,000 crore per day

• Under-recoveries in Q1 2026 have reached:

Nearly ₹2 lakh crore

Officials said this strategy has allowed India to keep domestic petroleum prices stable even after more than 70 days of global market disruptions.

In many other countries, fuel prices have reportedly surged by:

30% to 70%

The government said the burden has intentionally not been passed on to Indian consumers.

PM Modi Calls for National Fuel Conservation Campaign

The meeting followed Prime Minister Narendra Modi's nationwide appeal urging citizens to reduce unnecessary consumption and support national economic resilience during the global crisis.

According to officials, the Prime Minister encouraged:

• Greater use of metros and public transport

• Carpooling

• Reduced fuel wastage

• Limiting unnecessary foreign travel

• Choosing domestic tourism

• Avoiding non-essential gold purchases for one year

The Prime Minister also urged farmers to:

• Reduce chemical fertiliser usage by 50%

• Shift toward natural farming

• Expand solar-powered irrigation

• Reduce dependence on diesel pumps

Rajnath Singh directed ministries and states to:

Institutionalise fuel efficiency and responsible consumption behaviour.

India Accelerates Push Toward Renewable Energy Security

The Defence Minister stressed that the current West Asia crisis demonstrates the urgent need for India to rapidly transform its energy strategy.

Singh called for:

• Expansion of renewable energy

• Diversification of energy imports

• Greater investment in energy efficiency technologies

• Re-evaluation of strategic reserve requirements

• Strengthening long-term energy security

He warned that global crises can no longer be treated as isolated regional events in an interconnected world economy.

"This situation should not be viewed merely as a stand-alone event," Singh said, emphasising the need for:

• Strategic crisis anticipation

• Early warning systems

• Scenario planning

• Whole-of-government preparedness

Maritime Trade Security Prioritised

The government also identified:

Maritime trade route security

as a critical national priority during the current phase of instability.

Officials said India's immediate objectives remain:

• Maintaining uninterrupted energy flows

• Preserving economic stability

• Protecting global shipping routes

• Preventing supply chain disruptions

India's dependence on imported crude oil through sensitive maritime corridors has heightened concerns over potential disruptions in the Gulf region.

Emergency Support Package for MSMEs and Industry

The IGoM was also briefed on new economic measures aimed at protecting businesses from global market disruptions.

The Union Cabinet recently approved:

Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

with:

₹2.55 lakh crore additional credit support

The scheme provides:

• 100% credit guarantee coverage for MSMEs

• 90% coverage for non-MSMEs and airlines

The government said the measure is intended to:

• Improve liquidity

• Protect employment

• Stabilise industry operations

• Support sectors vulnerable to global disruptions

Government Introduces 'War-Like' Force Majeure Relief

The Ministry of Finance has also issued new guidance allowing businesses to invoke:

Force majeure-like protections

for public procurement contracts due to the ongoing international crisis.

Under the revised rules:

• Performance deadlines may be extended by:

Two to four months

from 28 February 2026 onward.

The move follows growing demands from industry for protection against:

• Supply chain disruptions

• Shipping delays

• Rising import costs

• Global logistical instability

Fertiliser Supplies Remain Strong

The government also sought to reassure farmers and agricultural stakeholders about fertiliser availability ahead of the Kharif 2026 season.

Officials confirmed that:

Fertiliser supplies currently exceed national requirements

Total fertiliser stocks as of 11 May 2026 stand at:

199.65 lakh metric tonnes

This compares with:

178.58 lakh metric tonnes in May 2025

The government noted that current stocks already represent:

More than 51% of Kharif season requirements

significantly above the usual preparedness level of around 33%.

Fertiliser Demand Rising Amid Agricultural Preparations

Sales data indicates strong agricultural demand, with total fertiliser sales between March and May 2026 reaching:

71.19 lakh metric tonnes

up from:

59.65 lakh metric tonnes during the same period last year.

The government said advance planning, improved logistics and inventory management have helped ensure uninterrupted supplies despite global uncertainty.

Government Urges Citizens to Remain Calm

Following the meeting, Rajnath Singh posted on X urging citizens not to panic, assuring that:

"All concrete steps are being taken to prevent shortages or disruptions in supply chains."

Officials stressed that conservation measures are intended not because of immediate shortages, but to:

• Strengthen long-term resilience

• Protect foreign exchange reserves

• Reduce fiscal pressure

• Prepare for prolonged instability if necessary

The government's broader message remains clear:India's supply chains, fuel stocks and economic systems remain stable, but coordinated public participation and prudent consumption are now being positioned as essential elements of national preparedness in an increasingly volatile global environment.