India Weathers Middle Eastern Storm: LPG, auto fuels stable, shot in the arm for SEZ—Key developments and what consumers should do

Middle East India Impact Update: As India continues to battle disruptions having their roots in the Middle East, various departments of the Indian government continued to move swiftly on Thursday to counter the impact of crisis, with the Petroleum and Natural Gas Ministry reviewing fuel supply with states and the Commerce and Industry Ministry confirming global consensus building up for de-escalations. Officials assured the public of adequate availabliity of LPG, petrol and diesel, stressing that uninterrupted LPG supply for the consumer remains the government's top priority, vowing strict action against hoarders and misinformation mongers. They -- once again -- urged citizens not to buy or book auto and cooking fuel in panic, emphasising PNG, alternate fuels and energy conservation.

Commerce and Industry Minister Piyush Goyal said India has effectively cushioned the shock under Prime Minister Narendra Modi’s leadership, stating that the government is taking timely decisions on key issues to ensure broad-based benefits. The Centre has already announced customs duty exemptions on key petrochemicals to support manufacturing and ease costs, with an inter-ministerial group actively monitoring trade and logistics, while supply-side steps aim to maintain stability. It has also permitted SEZ units to sell limited output in the domestic market at a temporary concessional duty.

Here are key takeaways and updates from various government departments:

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Petroleum and Natural Gas Ministry holds major meeting

The Petroleum Secretary reviewed the fuel supply situation across states and UTs, instructing local administrations to take all necessary steps to ensure smooth supply of petroleum products. Praising them for working hand and glove with the Centre in managing the situation, the official acknowledged cooperation from states and UTs and emphasised maintaining supply stability and public confidence.

The priority continues to be to ensure uninterrupted supplies to households and essential sectors, with a special focus on LPG distribution, said the official, stating that strict action must be taken against those engaging in acts of hoarding, diversion and rumour-spreading.

All states and UTs were urged to strengthen monitoring and take stern action against violations.

Defence Minister Rajnath Singh chairs IGoM meeting

Defence Minister Rajnath Singh chaired a meeting of the informal group of ministers (IGoM) -- a second such meeting during the crisis, where detailed discussions were held on the impact of the West Asia tensions on the country.

The minister said that continuous monitoring of the situation is necessary in this matter.

India participates in Strait of Hormuz meeting

India was represented by its Foreign Secretary in a special meeting on the Strait of Hormuz under the leadership of the United Kingdom where more than 60 countries participated.

The current crisis is impacting India with a direct impact on its energy security, said the secretary.

Highlighting the importance of ensuring free movement of ships at sea, the official said that de-escalation and diplomacy-dialogue are the solution to the crisis.

Broader consensus reached among countries for de-escalation: Piyush Goyal

The trade minister said that the country has been impacted but also managed to shield itself from the shock effectively, noting that the situation remains stable due to continuous supply of LPG, LNG and crude oil.

Given India's strong ties with the US, he said, any deal with America will be better compared to those with other countries, also given that trade and investment relations are moving in the right direction.

He also said that inter-ministerial discussions on shipping costs and related issues are being carried out regularly.

Full customs duty exemption on critical petrochem products

The Centre has granted a full customs duty exemption on critical petrochemical products until June 30 -- a step set to benefit feedstock and intermediates-dependent sectors. The targeted relief will ensure the availability of critical petrochem inputs for the domestic industry while reducing cost pressures on downstream sectors and safeguarding domestic supply stability.

Sectors such as plastics, packaging, textiles, pharmaceuticals, chemicals and automotive components are set to benefit from this move.

Besides, the consumer is set to get relief on final products.

Key takeaways from inter-ministerial briefing

Here is a summary of what government spokespersons said at the April 2 briefing:

• Inter Ministerial Group monitoring supply chains, shipping disruptions, logistics in real time; it meets daily at 10 am
• Some sectors could be impacted due to the West Asia situation
  • Food
  • Agriculture
  • Engineering goods
  • Gems and jewellery
  • Energy and petroleum
  • Chemicals
  • Pharma

• RELIEF scheme
• RoDTEP restoration
• Policy relaxations

Various departments have been aprising the public about the Middle East situation and its potential impact on the country's citizens and its economy regularly since March 11.

What consumers should know

• Petrol, diesel and LPG supplies remain adequate across the country; no need to panic
• LPG supply to households is stable; no reported shortages at distributorships
• Commercial LPG supply gradually being restored
• PNG connections expanding rapidly
• Kerosene and alternate fuels being made available to ease pressure on LPG
• Strict action underway against hoarding, black marketing and misinformation

What to do

• Don't panic-buy
• Don't panic-book
• Don't visit distributors unnecessarily
• Avoid rumours
• Rely only on official updates
• Use digital booking for LPG
• Conserve energy
• Use alternate cooking options like PNG or electric appliances