Amidst the ongoing conflict between America and Iran, the United Arab Emirates (UAE) has decided to withdraw from OPEC and OPEC+, the organization of oil producing countries. The UAE said that considering the economic outlook and the changing energy scenario, it decided to withdraw from this alliance after 60 years. OPEC is an alliance (cartel) of major oil-producing countries that coordinates production policies to influence global oil supply and prices.

UAE out of OPEC

UAE said in a statement that it is also withdrawing from OPEC+. Russia is also included in OPEC+. This step is being considered a big blow for OPEC and its key member Saudi Arabia. This group collectively produces about 36% of the world’s oil and controls about 80% of oil reserves globally.

The UAE has long been demanding higher production quotas within OPEC, as it wanted to expand its production capacity beyond the limits set by the cartel. OPEC was founded in 1960 by Saudi Arabia, Iran, Iraq, Venezuela and Kuwait. UAE joined it after 7 years. The UAE is among the world’s top 10 largest oil producers and contributes about 3% to 4% of global oil production.

OPEC will be affected due to UAE’s exit

Experts believe that due to UAE’s exit, OPEC has lost about 15 percent of its production capacity and has also lost one of its most disciplined (rules following) members. According to the latest OPEC data, the UAE produces about 2.9 million barrels of oil every year. At the same time, the production of Saudi Arabia, the de facto leader of OPEC, is about 9 million barrels of oil.

It will be difficult for Saudi Arabia to keep the remaining OPEC members united and it will have to bear most of the burden of internal compliance and market management alone. Other members of OPEC can also follow the same path. This situation reflects a fundamental geopolitical reshaping in West Asia and global oil markets. Now this alliance includes countries like Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Algeria, Equatorial Guinea, Gabon, Libya, Nigeria, Congo.

What impact will UAE’s decision have on India?

With UAE’s exit from OPEC, questions are also being raised that what effect will it have on the world and India? First, due to the situation on Hormuz due to the Middle East war and now due to this decision of UAE, there are fluctuations in the prices of crude oil. However, it is too early to say whether this will be a relief for countries like India. If UAE increases oil production then the price of oil will reduce.

India-UAE relations have evolved into a major strategic partnership over the last few years. UAE has emerged as India’s third largest trading partner and a major source of Foreign Direct Investment (FDI).

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The Ministry of Petroleum and Natural Gas has clearly said that the situation of petroleum and LPG supply in India is completely safe and under control. There is ample supply with all retail fuel outlets. There is no shortage of petrol, diesel or LPG anywhere in the country. The ministry has appealed to citizens not to be misled by the mischievous, coordinated campaign being deliberately run to spread misinformation.

Ministry of Petroleum and Natural Gas categorically states that India’s petroleum and LPG supply situation is fully secure and under control. All retail fuel outlets have enough supplies. There is no shortage of petrol, diesel, or LPG anywhere in the country. The Ministry calls… pic.twitter.com/nzwb0a4TNR

— ANI (@ANI) March 26, 2026

PIB’s press release states that India is the world’s 4th largest refiner and 5th largest exporter of petroleum products, supplying refined fuel to more than 150 countries. Since India is a net exporter to the world, the availability of domestic petrol and diesel is structurally assured. All over one lakh retail fuel outlets across the country are open and distributing fuel without any interruption.

How many days of stock left? The government told

The government said that contracts for the supply of crude oil for the next 60 days have already been signed by Indian oil companies. India has a total reserve capacity of 74 days and the actual stock cover is currently around 60 days. This also includes crude oil, products and dedicated strategic reserves in caves, while we are on the 27th day of the Middle East crisis. The purchase of crude oil for the next 2 months has also been secured.

There is no shortage of LPG in the country: Government

The government has clarified that there is no shortage of LPG in the country. Following the LPG control order issued by the Ministry, domestic refinery production has increased by 40%, taking the daily LPG production to 50 TMT i.e. more than 60% of our requirement against the total daily requirement of about 80 TMT. Oil companies are successfully delivering more than 50 lakh cylinders every day. Due to panic orders by consumers, the demand for cylinders had reached 89 lakh cylinders and now has come down again to 50 lakh cylinders.