India May Restrict Petroleum Exports Amid Global Supply Disruptions, Priority to Domestic Demand

India plans to allow fuel exports only after meeting domestic demand, as global oil supply faces disruption due to ongoing geopolitical tensions impacting refineries and key shipping routes

New Delhi | 20 March, 2026: The Indian government is considering restrictions on the export of petroleum products, ensuring that domestic fuel demand is fully met before allowing supplies to international markets. The move comes amid rising global uncertainty triggered by escalating tensions involving the United States, Israel, and Iran, which have impacted key oil infrastructure and supply chains.

Disruptions in the strategically crucial Strait of Hormuz have raised concerns over global crude oil and gas availability. As the world’s third-largest importer and consumer of crude oil, India is particularly vulnerable to such fluctuations. At the same time, the country holds a significant position as a leading exporter of refined petroleum products.

Officials have directed oil companies to regularly submit detailed data on imports, exports, and production. The government has made it clear that export permissions will be granted only after ensuring sufficient availability of fuel within the country.

Private and joint venture players, including Reliance Industries, Nayara Energy, and HPCL-Mittal Energy, contribute nearly 40 percent of the total refining output.

However, the country still depends on imports for nearly 85-88 percent of its crude oil needs and around 50 percent of natural gas consumption.

With domestic consumption touching 222.3 million tonnes during the same period, the government’s priority remains ensuring energy security and stability in fuel supply.

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