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India Eases Restrictions on Kerosene Rules Amid Gas Crunch

(MENAFN) India is easing restrictions on kerosene distribution as it grapples with a natural gas shortage disrupting energy supplies across multiple regions.

The temporary policy shift, set to remain in force for 60 days, permits kerosene sales at designated fuel stations across 21 states and union territories, the Petroleum and Natural Gas Ministry announced Sunday. Officials say the step is designed to accelerate storage capacity, streamline transportation, and improve last-mile delivery during mounting supply pressures.

The move comes as geopolitical tensions in the Middle East strain energy flows, prompting precautionary measures in one of the world’s largest energy markets.

”Amid the evolving situation in West Asia, the Government of India is maintaining continuous oversight and implementing appropriate preparedness and response measures to ensure stability across key sectors,” the ministry said in a statement. “Efforts remain focused on sustaining uninterrupted energy supplies, safeguarding maritime operations, and extending necessary assistance to Indian nationals in the region.”

India depends heavily on imports, sourcing roughly 85% of its crude oil and close to half of its natural gas from abroad. About half of its crude and liquefied natural gas shipments typically pass through the Strait of Hormuz, a critical chokepoint vulnerable to disruption.

Against this backdrop, New Delhi is also weighing a return to direct liquefied natural gas (LNG) imports from Russia—an option not pursued since the escalation of the Ukraine conflict.

Authorities have sought to reassure markets, stating last week that fuel reserves are sufficient to meet domestic demand for at least two months.

As the world’s fourth-largest refining hub and fifth-largest exporter of petroleum products, India continues to supply refined fuels to more than 150 countries, according to the ministry.

In a sign of its ongoing regional role, India dispatched 38,000 metric tons of fuel to Sri Lanka on Saturday following a special request from President Anura Kumara Dissanayake to Prime Minister Narendra Modi. The shipment included 20,000 tons of diesel and 18,000 tons of gasoline.

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