Parliamentary panel to review domestic output of petroleum products on 15 May

India's Parliamentary Standing Committee on Petroleum and Natural Gas is scheduled to review the domestic production and supply of petroleum products, includ...

What Happened

India's Parliamentary Standing Committee on Petroleum and Natural Gas is scheduled to review the domestic production and supply of petroleum products, including petrol, diesel, LPG, and fertilizer feedstocks, on 15 May 2026.
The review is prompted by supply disruptions caused by the ongoing West Asia conflict, which has led to a blockade of the Strait of Hormuz — a critical chokepoint for global oil and gas trade.
Petrol and diesel stocks have remained at stable levels owing to domestic refinery output and pre-positioned reserves, but LPG shortages have emerged due to the blockade restricting liquefied petroleum gas imports from Gulf producers.
Booking restrictions on LPG cylinders have been imposed in some areas as a precautionary measure, with the Ministry of Petroleum and Natural Gas actively monitoring supply chains.
Fertilizer raw material imports (natural gas, phosphate, potash) are also under review as disruptions to Gulf supply routes affect feedstock availability for domestic fertilizer plants.

Static Topic Bridges

Strait of Hormuz — Geographic and Strategic Significance

The Strait of Hormuz is a narrow maritime passage connecting the Persian Gulf (Arabian Gulf) to the Gulf of Oman and, beyond it, the Arabian Sea and Indian Ocean. It is the world's most strategically critical energy chokepoint.

In 2024, oil flows through the Strait of Hormuz averaged approximately 20 million barrels per day (b/d), representing about 20% of global petroleum liquids consumption and over one-quarter of total global seaborne oil trade.
The strait is approximately 33 km wide at its narrowest point (between Oman and Iran), with two 3.2 km-wide shipping lanes.
Countries whose oil exports pass through the strait include Saudi Arabia, UAE, Kuwait, Iraq, Qatar, and Iran.
Major LNG exporters dependent on the strait include Qatar (one of the world's largest LNG exporters) and the UAE.
Asian economies — China, India, Japan, South Korea — receive the bulk of volumes transiting the strait.
India and Pakistan together imported almost two-thirds of their total LNG supplies via the Strait of Hormuz (2025 data).
India imported approximately 4.84 million barrels per day of crude oil in 2024, making it the third largest crude oil importer globally; a significant portion of this originates from Gulf producers routed through the strait.

Connection to this news: The Strait of Hormuz blockade is the direct trigger for India's petroleum supply concerns — both for crude oil (longer-term refinery feedstock) and for LPG (which is predominantly imported as Propane/Butane from Gulf producers and has limited domestic substitutability in the short term).

Parliamentary Standing Committees on Petroleum — Role and Composition

Department-Related Standing Committees (DRSCs) are permanent parliamentary committees that scrutinize the functioning, budget, and legislation of specific ministries. The Standing Committee on Petroleum and Natural Gas oversees the Ministry of Petroleum and Natural Gas and its affiliated public sector undertakings (PSUs).

India has 24 Department-Related Standing Committees, each with 31 members — 21 from Lok Sabha and 10 from Rajya Sabha.
The term of each standing committee does not exceed one year; committees are reconstituted annually.
Key functions: examine ministry's Demands for Grants (budget), scrutinize bills referred to them, review the working of ministries/PSUs, and take up any matter referred by the Presiding Officers of Parliament.
The Petroleum and Natural Gas Committee's jurisdiction covers the ministry, ONGC, IOC, BPCL, HPCL, GAIL, OIL, MRPL, and other petroleum PSUs.
Standing committees can call for documents, summon officials, and submit reports with recommendations — though the government is not bound to accept recommendations.
Constitutional basis: Parliamentary committees derive their authority from Rules of Procedure of Lok Sabha (Rule 331) and Rajya Sabha (Rule 268).

Connection to this news: The 15 May review is a classic standing committee oversight function — examining a supply-security situation with national economic consequences and likely summoning officials from the Ministry of Petroleum and Natural Gas and OMCs (Oil Marketing Companies) for testimony.

India's Oil Import Dependency and Energy Security

India imports approximately 85-87% of its crude oil requirements, making it highly dependent on external sources and therefore exposed to geopolitical disruptions in key transit routes.

India's total crude oil imports in 2024: approximately 4.84 million barrels per day (third largest globally).
Top import sources (2024): Russia (approximately 37% of total, following Ukraine war-related supply diversification), Iraq (approximately 21%), Saudi Arabia, UAE, Kuwait.
Russia's share rose sharply from less than 1% pre-2022 to 37% in 2024 — a supply diversification that partially reduced Gulf dependency.
India's LPG import dependency is high — approximately 60% of domestic LPG demand is met through imports, mainly from Gulf producers.
Domestic crude oil production covers only about 13-15% of total consumption; major producing basins are Mumbai High (offshore), Rajasthan (Cairn/Vedanta), and Krishna-Godavari basin.

Connection to this news: The LPG shortage specifically highlights a structural import dependency — domestic production of LPG (as a refinery byproduct) is insufficient to meet demand, and Gulf imports via the Hormuz route form the backbone of supply. Unlike crude oil, where Russia now provides a non-Hormuz alternative, LPG sourcing alternatives are more limited.

India's Strategic Petroleum Reserves

To buffer against short-term supply disruptions, India maintains strategic crude oil reserves at underground rock cavern facilities managed by Indian Strategic Petroleum Reserves Limited (ISPRL).

ISPRL was incorporated in June 2004 as a Special Purpose Vehicle under the Ministry of Petroleum and Natural Gas.
Current SPR capacity: 5.33 Million Metric Tonnes (MMT) at three locations — Visakhapatnam (Andhra Pradesh, 1.33 MMT), Mangalore (Karnataka, 1.5 MMT), and Padur (Karnataka, 2.5 MMT).
These reserves provide approximately 9.5 days of consumption cover.
SPR is in addition to commercial storage held by oil companies (approximately 65 days of net imports combined).
India plans to expand SPR in Phase 2 to include Chandikhol (Odisha) and Padur expansion — increasing total capacity to approximately 11.83 MMT.
The IEA recommends member countries maintain 90 days of net import cover; India's SPR alone falls short, but combined with commercial stocks, total cover is closer to IEA norms.

Connection to this news: The West Asia conflict and Hormuz blockade are precisely the scenario for which strategic petroleum reserves exist — providing a supply buffer while diplomatic or logistics alternatives are arranged. The Parliamentary Committee will likely also review the status of SPR drawdown or pre-positioning.

Key Facts & Data

Strait of Hormuz: approximately 20 million barrels/day oil flow (2024), ~20% of global petroleum liquids consumption.
Strait width at narrowest: approximately 33 km; two 3.2 km-wide shipping lanes.
India's crude oil import dependency: approximately 85-87% of total consumption.
India's crude oil imports (2024): approximately 4.84 million barrels/day (third largest globally).
India's LPG import dependency: approximately 60% of domestic demand.
Russia's share of India crude oil imports (2024): approximately 37%.
ISPRL SPR capacity: 5.33 MMT at Visakhapatnam, Mangalore, Padur — approximately 9.5 days of consumption cover.
Parliamentary Standing Committee on Petroleum and Natural Gas: 31 members (21 Lok Sabha + 10 Rajya Sabha); one-year term.
24 Department-Related Standing Committees in total.