India currently maintains a substantial 60-day reserve of crude oil, alongside 60 days of natural gas stock and 45 days of LPG rolling stock. The nation's foreign exchange reserves also stand strong at $703 billion. However, amidst the ongoing West Asia crisis, the Centre has issued a fresh warning, urging citizens to conserve fuel and avoid panic-buying essential commodities.
Why Conservation is Crucial Despite Reserves
While India’s Defence Ministry affirmed there is “no reason for anxiety” regarding immediate supplies, the government highlighted a heavy financial burden stemming from elevated global crude oil prices. Public sector oil marketing companies (OMCs) are reportedly absorbing losses of nearly Rs 1,000 crore daily to shield consumers from the global energy shock. These under-recoveries have climbed to almost Rs 2 lakh crore in the first quarter of 2026, even as domestic petrol and diesel prices have remained largely unchanged for over 70 days since the conflict began.
Many other nations have seen fuel prices surge by 30 to 70 percent, prompting emergency measures to curb domestic consumption.
Prime Minister's Appeal and Long-Term Strategy
The call for conservation follows Prime Minister Narendra Modi's appeal for citizens to reduce fuel consumption, curtail unnecessary foreign travel, and postpone non-essential gold purchases for a year to safeguard foreign exchange reserves. The Prime Minister also advocated for increased use of public transport, carpooling, and work-from-home practices. Farmers were urged to reduce chemical fertilizer use in favor of natural farming and solar-powered irrigation.
Defence Minister Rajnath Singh, who chaired the fifth meeting of the Informal Group of Ministers (IGoM) on West Asia, reviewed the conflict's impact on India’s energy supplies, economy, and supply chains. He directed various ministries and states to implement the Prime Minister's appeal with “concrete steps” on the ground. Singh emphasized the need for institutionalizing fuel efficiency, public awareness, and responsible consumption behavior through coordinated efforts.
Diversifying Energy and Strengthening Reserves
Furthermore, Singh stressed accelerating India’s transition towards renewable energy, diversifying energy sources, and strengthening strategic reserves to better tackle future supply disruptions. He underscored that global crises directly affect interconnected economies like India, and the West Asia conflict should not be viewed in isolation.
The IGoM meeting also addressed recent measures for industry and MSMEs, including the Emergency Credit Line Guarantee Scheme 5.0, which provides additional credit flow with government-backed guarantees. The Finance Ministry has also allowed force majeure-related relief in public procurement contracts due to the ongoing crisis, extending deadlines by two to four months from February 28, 2026.