Anabelle Colaco
20 Mar 2026

NEW DELHI, India: India will prioritise domestic fuel demand as it reviews requests from neighbouring countries for supplies, approving exports only if surplus volumes are available, officials said, amid disruptions caused by the Iran war.

The country, a key fuel supplier to Bangladesh, Nepal, Bhutan, Sri Lanka and the Maldives, is assessing requests case by case as global energy markets tighten following disruptions to shipping through the Strait of Hormuz.

"First, the domestic demand has to be met, and if there is a surplus, then a decision would be taken by an appropriate authority," said Sujata Sharma, a joint secretary in the oil ministry.

"We have received these requests, and we are examining those requests, keeping in mind our own requirements and availability," foreign ministry spokesperson Randhir Jaiswal said at a press conference.

India has been hit by rising crude prices, though it has not imposed export restrictions on refined fuels, unlike China. Officials said the country currently has sufficient crude supplies and fuel stocks to meet domestic demand.

However, the situation has been complicated by shipping disruptions. Four Indian oil vessels carrying 1.6 million metric tons of crude, six tankers with 320,000 tons of liquefied petroleum gas and a ship carrying 200,000 tons of liquefied natural gas are stranded in the Strait of Hormuz, according to the shipping ministry.

India is facing one of its worst cooking gas shortages in decades, with supplies from the Middle East — which account for over 40% of crude imports and 90% of LPG imports — severely affected.

To manage the crisis, the government has ordered refiners to maximise LPG production and limit industrial sales, while urging households to avoid panic buying and shift to piped natural gas.