Ministry of Petroleum & Natural Gas
azadi ka amrit mahotsav

Inter-Ministerial Briefing on Recent Developments in West Asia


Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 targets total additional credit flow of ₹2,55,000 crore (including ₹5,000 crore for airlines) for extending additional credit support to eligible business borrowers in view of the West Asia situation

Record foodgrain and pulses production strengthens availability; Prices remain stable across key food categories

Government maintains comfortable foodgrain stocks; Domestic availability of edible oils remains adequate, supported by regular imports, domestic production and existing stocks

India’s fertiliser security remains strong, stable, and well-managed, with availability consistently exceeding requirement across all major fertilisers

About 1.22 Crore LPG cylinders delivered against bookings of around 1.21 Crore LPG cylinders during last 3 days

Adequate stocks of petrol and diesel available at all Petrol Pumps in the country; Sale of petrol and diesel increased by more than 30% in many districts during May-26,

Shipping services in the region remain stable and operational; Number of services operating East of Hormuz and through the Red Sea rose from 127 in February to a peak of 257 in April, with 245 services recorded in May

Posted On: 01 JUN 2026 6:02PM by PIB Delhi

Amid the evolving situation in West Asia, the Government of India continues its efforts to keep citizens informed through regular updates. In this regard, a media briefing was held today at the National Media Centre, where officers from the Ministries of Petroleum and Natural Gas, Ports, Water ways and Shipping provided updates on fuel availability and measures being undertaken to maintain stability across key sectors. Ministry of Chemicals and Fertilizers, Ministry of Consumer Affairs, Food and Public distribution, Department of Financial Services, Ministry of Finance also briefed the media in this context.

Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

The department of Financial Services has noted that the Union Cabinet has approved Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. The scheme aims to provide credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs as well as airline sector, to Member Lending Institutions (MLIs) by National Credit Guarantee Trustee Company Limited (NCGTC) for the amount in default under the additional credit facility extended to the eligible borrowers to tide over any short-term liquidity mismatches in view of West Asia Crisis.

Salient features of the scheme:

  • Eligible borrowers: MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines having outstanding credit facilities, as of March 31, 2026, provided their accounts are standard.
  • Guarantee coverage: 100% for MSMEs and 90% for non-MSMEs as well as airline sector.
  • Guarantee Fee: Nil.
  • Quantum of Support: Additional credit up to 20% of peak working capital utilised during Q4 FY 26 (capped at ₹100 crore). For airlines up to 100% (capped at ₹1,500 crore per borrower, subject to satisfying certain specific conditions).
  • Tenor of Loan:

For MSMEs/Non MSMEs (except Airline sector): 5 years from the date of first disbursement including moratorium of 1 year.

For airline sector: 7 years from the date of first disbursement including moratorium of 2 years.

  • Tenure of Guarantee Cover: Maximum period of guarantee cover shall be co-terminus with the tenor of the loan.
  • Duration of the Scheme: The Scheme would be applicable to all loans sanctioned during the period from the date of issue of these guidelines by NCGTC upto 31.03.2027

Impact:

The scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict. Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains. The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and airline sector, to ensure their additional working capital needs, are catered by the Banks & FIs. By providing timely liquidity, the scheme will sustain the businesses and prevent job losses. It will also promote uninterrupted domestic production and maintain the resilience of the ecosystem.

Prices and Availability of Essential Food Commodities

Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution monitors the daily prices of 40 food commodities reported from 578 centres across the country. The department informed that:

    • Amid ongoing geopolitical tensions, India’s food price stability is being supported by a record food grain production of 3,766 LMT in 2025-26, an increase of 5.2% over 3,577 LMT in 2024-25 and about 13% higher compared to levels of 2023-24. Higher output across both cereals and pulses has eased availability concerns and contributed to near-term price stability.
    • Total pulses production in 2025-26 is estimated at a record 274.09 LMT; an increase of 6.7% over previous year’s ~257 LMT, and about 13% rise from 242 LMT during 2023-24. Between 2024-25 and 2025-26 production of all major pulses witnessed an increase. Chana production rose significantly by 12.6% to 125.14 LMT over previous year’s 111 LMT. Moong production increased by around 6% to 44.92 LMT from 42.44 LMT. Lentil production grew by approximately 7%, reaching 17.62 LMT from 16.54 LMT, reflecting broad-based growth across major pulse crops.
    • Rising domestic production led to a decline in Pulse imports. Pulse imports declined from 73 LMT in FY 2024-25 to 60 LMT in FY 2025-26, leading to nearly a 30% reduction in the import bill. Chana imports declined by ~51% in FY 2025-26 over previous year’s 15.06 LMT. This decline has occurred despite the continuation of a free import policy for pulses, indicating that the moderation is primarily driven by improved domestic availability. And the fact that the countries from which pulses was imported such as Myanmar, Tanzania, Malawi, Mozambique, Canada, Australia, Brazil are not impacted by West-Asia Crisis.
    • The moderation in imports is particularly significant amid the rupee depreciation, as reduced import volumes have helped ease pressure on the overall import bill amidst robust availability.
    • Stock of pulses with the Government is at ~43 LMT in May-26, marking the highest level over the past three years and more than double the stocks recorded in May 2024 (~21 LMT) and May 2025 (~18 LMT). Currently under PSS, procurement remains significant, with over 5.34 LMT of Tur and 20.35 LMT of Chana procured, so far.
    • Higher production, reduced imports, and strong procurement collectively indicate a comfortable availability position, aligning with the government’s broader strategy to promote pulses cultivation, reduce dependence on chemical fertilizers, and support long-term sustainability in cropping systems.
    • Production of major horticultural crops like potato, tomato and onion are sufficient to meet domestic demand; potato 584 LMT against 586 LMT last year; tomato ~227 LMT against ~205 LMT last year; and onion ~273 LMT against 307 LMT last year.
    • Government has set price stabilisation buffer target of 2 LMT for onion in 2026-27. Procurement commenced on May 15 and is expected to support mandi prices and help moderate price volatility. To further encourage timely procurement amid rising arrivals, the procurement price was increased with effect from May 26, 2026.
    • Prices of food commodities are stable. Price trends across key food categories such as cereals, milk, pulses and sugar continue to exhibit stable price behaviour. Among the vegetables, potato and onion prices are range-bound, helping maintain overall stability in the food basket. No unusual price volatility in the food commodities
    • Based on consumer grievance data available through, National Consumer Helpline, sharp decline observed in grievances with respect to LPG Gas connection from April onwards.
    • Initial spikes in complaints were short‑lived and gradually corrected through enforcement and system interventions.
    • Data till 24th May indicates a large dip in grievances/complaints regarding Black marketing, Deficiency in Services, and Extra charges being demanded for Cylinder/Home delivery

Foodgrain Stock Position and Food Security Preparedness

The Government of India maintains comfortable foodgrain stocks to meet requirements under the National Food Security Act (NFSA) and other welfare schemes. The department of Food and Public Distribution has further added that the Government is closely monitoring developments in international edible oil markets in view of the evolving geopolitical situation.

    • As on 28 May 2026, wheat stock in the Central Pool stood at 513 Lakh Metric Tonnes (LMT) against the prescribed buffer norm of 275.80 LMT for 1 July. Wheat procurement during the current Rabi Marketing Season has reached approximately 350 LMT and procurement operations continue up to 30 June 2026.
    • Rice stock in the Central Pool stood at 397 LMT against the prescribed buffer norm of 135.40 LMT for 1 July. In addition, around 298 LMT of procured paddy is yet to be milled and added to rice stocks.
    • Overall, foodgrain stocks available with the Government are substantially above the prescribed buffer norms, providing adequate availability for food security requirements and market interventions, if required.
    • Domestic availability of edible oils remains adequate, supported by regular imports, domestic production and existing stocks. Imports continue from major supplying countries, including Indonesia and Malaysia (palm oil), Russia and Ukraine (sunflower oil), and Argentina and Brazil (soybean oil). The Government is in regular consultation with stakeholders and is monitoring supply and price trends.
    • Sugar availability in the country remains adequate to meet domestic consumption requirements. Stocks and production levels are sufficient to ensure continued availability in the domestic market.
    • Ethanol Blended Petrol (EBP) Programme: India has established adequate ethanol production capacity to meet blending requirements under the Ethanol Blended Petrol (EBP) Programme. Availability of feedstock remains sufficient to support ethanol production. The programme contributes to reducing dependence on imported fossil fuels and supports the use of domestically produced renewable fuel.

Fertilizer stock position and availability

The Department of Fertilizers has stated that India’s fertilizer security remains strong, stable, and well-managed, with overall availability consistently exceeding requirements across all major fertilizers. The overall stock position of fertilizers in the country remains comfortable.

    • Department of Agriculture & Family Welfare has re-assessed the requirement for Kharif-2026 in consultation with states of major fertilizers i.e. Urea from 194.02 to 190.32 and DAP from 59.17 LMT to 56.23 LMT.
    • For Kharif 2026, the fertiliser requirement has been re-assessed by DA&FW at 383.9 LMT, against this stock as on today is around 199.86 LMT (more than 52%), significantly higher than the usual level of about 33%. This reflects improved planning, advance stocking, and efficient logistics management by the Government.

 

Domestic production and import of fertilizers after crisis;-(Lakh Tons)

Product

Domestic production after crisis

Import reached on Indian Ports after crisis

Urea

63.67

15.44

DAP

8.89

1.43

NPKs

20.29

6.30

SSP

11.96

0

MOP

0

4.45

Total

104.81

27.62

 

    • Total of approx. 132.43 LMT fertilizers through imports and Domestic production has been added in the availability after crisis situation.
    • India has already secured approx. 25 LMT Urea, 15 LMT DAP and 10 LMT NPKs including AS from out of SOH to be arrived on Indian ports in June-July.
    • India has issued another global tender for procurement of 17 LMT Urea, which are under progress.
    • Inspite of challenges, India achieved domestic production of urea approx. 25.17 LMT in May,26, which are higher by 2.80 LMT as compared to May-25 production.
    • India achieved domestic production of DAP approx. 3.86 LMT in May,26, which are higher by 2,000 MT as compared to May-25 production
    • Availability of inputs for production of fertilizers i.e. Urea and P&K fertilizers is being regularly reviewed by the Department of Fertilizers.
    • DoF is regularly paying all the subsidy bills raised by the companies on weekly basis and at present, adequate budget is available for payment of fertilizers subsidy.
    • 10 Meetings of EGoS held till date to ensure the adequate availability of the fertilizers and most of the challenges in the availability addressed by EGoS.
    • India’s fertiliser security remains strong, stable, and well-managed, with availability consistently exceeding requirement across all major fertilisers.

Energy Supply and Fuel Availability

The Ministry of Petroleum and Natural Gas provided an update on the current fuel supply situation, outlining measures being taken to ensure uninterrupted availability of petroleum products and LPG in the context of the evolving situation in West Asia. It was noted that:

Public Advisory and Citizen Awareness

  • Citizens are advised to avoid panic purchase of petrol, diesel and LPG as the Govt is making all efforts to ensure availability of petrol, diesel and LPG.
  •  Beware of rumours and rely on official sources for correct information.
  • LPG consumers are requested to use digital booking platforms and avoid visiting distributors.
  •  Citizens are encouraged to use alternate fuels such as PNG and electric or induction cooktops.
  • Bulk and industrial consumers are requested to procure diesel from authorized procurement channel.
  •  All citizens are requested to make necessary efforts to conserve energy in their daily use during the current situation.

Government Preparedness and Supply Management Measures

  • Despite the ongoing geopolitical situation, the Government has ensured that 100% supply is being made to Domestic LPG, Domestic PNG and CNG (Transport).
  • For commercial LPG, priority has been given to hospitals, educational institutions. Besides this, priority has also been given to pharma, steel, automobile, seed, agriculture, etc. In addition to this, supply of 5 Kg FTL to migrant labour is also doubled based on avg. daily supply on 2nd and 3rd March 2026.
  • The Government has already implemented several rationalisation measures on both the supply and demand side, including enhancing refinery production, increasing the booking interval from 21 to 25 days in urban areas and up to 45 days in rural areas and prioritising sectors for supply.

Coordinated Efforts with States/UTs and Institutional Mechanisms

  • State Governments are empowered under the Essential Commodities Act, 1955 and LPG Control Order, 2000 to monitor supply and act against hoarding and black marketing.
  • Govt. of States/UTs have to play a primary role in monitoring and regulating supply situation of essential commodities including Petrol, Diesel and LPG. Govt. of India has reiterated the same via multiple letters and VCs to all States/UTs.
  • Government of India vide multiple letters and VCs have stressed the need for proactive public communication to reassure citizens regarding adequate fuel availability.
  • Again, Govt. of India vide letter dated 26.05.2026 has requested Chief Secretaries of all States/UTs to issue appropriate direction to State/district authorities to monitor and review district wise HSD/MS offtake pattern, intensify inspections and enforcement activities in vulnerable areas and along major transportation/industrial corridors to prevent unauthorized procurement of HSD through retail outlets by industrial and commercial consumers and initiate prompt penal action against violators.

Enforcement and Monitoring Actions

    • Enforcement actions by States/UTs continue across the country to curb hoarding and black marketing of Petrol, Diesel and LPG.
  • LPG related enforcement – In the last 3 days, 10 FIRs were registered and 3 persons were arrested across the country.
  • Petrol, Diesel related enforcement – In the last 3 days, about 1300 raids were conducted wherein 960 litres of Petrol and 2194 litres of Diesel was seized, 18 FIRs were registered and 7 persons were arrested across the country.
    • Similarly, the surprise inspections by the PSU OMCs officials are also continuing-
  • LPG distributorships - During last 3 days, inspections at more than 460 LPG distributorships have been conducted. Penalties have also been imposed on 42 LPG distributorships.
  • Retail Outlets – During last 3 days, inspections at about 1850 retail outlets have been conducted. Further, Penalties have also been imposed on 19 Retail Outlets, and 446 Retail outlets have been put under suspension.

LPG Supply

Domestic LPG Supply Status:

  • LPG supply continues to be affected by the prevailing geopolitical situation.
  • Supply of LPG to domestic households has been prioritized.
  • No dry-outs have been reported at LPG distributorships.
  • Online LPG cylinder bookings increased to about 99% on an industry basis yesterday.
  • Delivery Authentication Code (DAC) based deliveries have increased to about 95% to prevent diversion. DAC is received on the registered mobile number of the consumer.
  • During last 3 days, about 1.22 Crore LPG cylinders were delivered against bookings of around 1.21 Crore LPG cylinders.

 

Commercial LPG Supply and Allocation Measures:

  • Govt. of India has decided to allocate total commercial allocation to 70% of the pre-crises level incl. 10% reform based.
  • During last 3 days, about 1.8 Lakh – 5 Kg FTL cylinders were sold.
  • Since 3rd April 2026, PSU OMCs have organised more than 17,150 awareness camps for 5 Kg FTL Cylinders, wherein more than 2.72 Lakh - 5Kg FTL cylinders were also sold. 
  • Yesterday, around 2527 - 5kg FTL cylinders were sold through about 179 camps.
  • A three-member committee of Executive Directors of IOCL, HPCL and BPCL, in consultation with State authorities and industry bodies finalises the plan for the sale of Commercial LPG in the States/UTs.
  • During May-26 month, total of 2,09,353 MT of Commercial LPG has been sold.
  • During last 3 days, total of 22,641 MT of Commercial LPG has been sold.
  • During May-26 month, about 8382 MT of Auto LPG has been sold by PSU OMCs, which is about 170% increase over Feb-26 month.

 

Natural Gas Supply and PNG Expansion Initiatives

  • Consumers have been prioritised with 100% supplies to D-PNG and CNG-Transport.
  • Supply to operating Urea Plants is currently at around 98% of their average consumption over the preceding six months.

 

  • Gas supply to other industrial and commercial sectors, including supplies through CGD networks, is enhanced up to 80%.
  • CGD entities have been advised to prioritize PNG connections for commercial establishments such as hotels, restaurants and canteens across all their GAs, to address concerns regarding the availability of commercial LPG.
  • States/UTs and Central Ministries have been requested to expedite approvals required for expansion of CGD networks.
  • The Government of India vide letter dated 18.03.2026 has offered all States/UTs additional 10% allocation of commercial LPG to States provided they can help in long term transition from LPG to PNG.
  • The Government of India vide Gazette dated 24.03.2026 has notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026 under the Essential Commodities Act, 1955. The Order provides a streamlined and time-bound framework for laying and expanding pipelines across the country, addressing delays in approvals and access to land, and enabling faster development of natural gas infrastructure, including in residential areas. It is expected to accelerate PNG network growth, enhance last-mile connectivity, and support the transition to cleaner fuels, thereby strengthening energy security and advancing India’s gas-based economy.
  • PNGRB has directed CGD entities to expedite D-PNG connections. Also, the National PNG Drive 2.0 has been extended till 30.06.2026 to sustain momentum in PNG expansion.
  • To encourage a cleaner, more secure and self-reliant energy future, the Government of India has developed a model draft State CBG Policy. The model policy is intended to serve as a comprehensive flexible guiding framework to enable States to create their own investor-friendly and implementation-oriented ecosystem for CBG development. Those States which opt for this, will be prioritized for the next tranche of additional allocation of commercial LPG.

· Since March 2026, about 8.56 Lakh PNG connections have been gasified and infrastructure has been created for additional 2.96 Lakh connections, taking the total to 11.52 lakh connections. Further, about 8.78 Lakh customers have been registered for new connections.

  • Till 31.05.2026, more than 77,800 PNG consumers have surrendered their LPG connections via MYPNGD.in website.

Crude Position and Refinery Operations

  • All refineries are operating at high capacity with adequate crude inventories, while sufficient stocks of petrol and diesel are being maintained.
  • Domestic LPG production from refineries has been increased to support domestic consumption.
  • An inter-ministerial Joint Working Group (JWG) has been set up to ensure availability of petrochemical feedstock supply for the domestic market. Subsequently, Govt. of India vide order dated 01.04.2026 has permitted Oil Refinery companies including Petrochemical Complexes to make certain minimum quantities of C3 & C4 streams available for critical sectors as determined by Centre for High Technology (CHT).
  • Based on the requests received from the Department of Pharmaceuticals, Department of Chemicals & Petro Chemicals (DCPC), Dept. for Promotion of Industry and internal trade (DPIIT), the provision for C3-C4 molecules of 1120 MT/day, from LPG pool, has been made for Pharma, Chemical and Paint sector companies.
  • During May-26 month, about 14500 MT of C3-C4 Molecules (comprising Propylene and Butylene) and about 6100 MT of Butyl Acrylate has been sold by Mumbai, Kochi, Vizag, Chennai, Mathura and Gujarat refineries to Chemical, Pharma and Paint Industry.

 

Retail Fuel Availability and pricing Measures

  • All Retail outlets are operating normally across the country.
  • Middle East crisis has resulted in abnormal increase in the crude prices. In order to protect consumers from this impact, the Government of India has decided to absorb a part of this burden through a reduction in excise duties on petrol and diesel by Rs. 10/litre.
  • Govt. of India vide Gazette notification dated 31.05.2026 has reduced the export levy on petrol from Rs. 3 per litre to Rs. 1.5 per litre, on diesel from Rs. 16.50 per litre to Rs. 13.50 per litre and on ATF from Rs. 16 per litre to Rs. 9.5 per litre.

 

  • Unusually high sales and heavy crowding is observed at Retail outlets in certain areas. However, it is informed that there are adequate stocks of petrol and diesel available at all Petrol Pumps in the country.

 

  • During the month of May-26, the sale of petrol and diesel has increased by more than 30% in many districts.

 

  • There is decline in the sale of private oil marketing companies (-38%) and bulk sale of PSU OMCs (-29%). This volume has shifted to retail outlets of PSU OMCs.

 

  • States/UTs have been requested to form special squads and take action on  malpractice of bulk consumers and hoarders taking supplies meant for retail consumers, black marketing, unauthorised stocking and diversion of petroleum products under relevant provisions of EC Act and Control orders issued thereunder.

 

  • Industry associations have also been requested to advice their members to purchase diesel from authorised procurement channels.

 

Maritime Safety and Shipping Operations

The Ministry of Ports, Shipping and Waterways provided an update on the prevailing maritime situation in the Persian Gulf, detailing the measures being undertaken to ensure the safety and security of Indian vessels and crew in the region. It was stated that:

  • Despite the ongoing situation in West Asia, shipping services in the region have remained stable and operational. The number of services operating East of Hormuz and through the Red Sea rose from 127 in February to a peak of 257 in April, with 245 services recorded in May, underscoring the resilience of maritime trade and sustained confidence among shipping stakeholders.
  • The Ministry of Ports, Shipping and Waterways continues to coordinate with the Ministry of External Affairs, Indian Missions, and maritime stakeholders to ensure seafarer welfare and uninterrupted maritime operations.
  • All Indian seafarers in the region are safe, and no incident involving Indian-flagged vessels or foreign vessels with Indian crew has been reported in the past 72 hours.
  • DG Shipping Control Room has handled 11,186 calls and more than 24,830 emails since activation. In the last 72 hours, a total of 345 calls and 732 emails have been received from seafarers, their families, and maritime stakeholders.
  • The Ministry, through the Directorate General of Shipping (DG Shipping), has facilitated the safe repatriation of more than 3,446 Indian seafarers so far, including 24 in the last 72 hours from various locations across the Gulf region.
  • Port operations across India remain normal, with no congestion reported.

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TM


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