Parliamentary Panel to Review Petroleum Supplies as Hormuz Blockade Causes LPG Shortage
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.
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.
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).
Key Details
- 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).
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.
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).
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.
- 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.