Fuel Supply Stable Despite West Asia Crisis; LPG Output Rises, PNG Push Accelerates
The Centre’s calibrated approach signals a shift toward structural energy resilience, using the crisis as a trigger to accelerate PNG adoption and reduce LPG dependency
The Government of India has stepped up measures to ensure uninterrupted fuel availability across the country amid ongoing disruptions linked to the Strait of Hormuz situation, even as domestic LPG production from refineries has surpassed pre-crisis levels.
At a high-level inter-ministerial media briefing held at the National Media Centre, officials from key ministries reassured that petrol, diesel, LPG, and natural gas supplies remain stable, while cautioning against panic buying driven by rumours.
LPG & Fuel Supply: Situation Under Control
- Domestic LPG production has been significantly ramped up beyond pre-crisis levels
- No “dry-outs” reported at LPG distributorships nationwide
- Petrol and diesel stocks remain adequate across all retail outlets
- Panic buying seen in pockets, but government urges citizens not to believe rumours
In a key logistical development, two Indian LPG vessels have successfully crossed the Strait of Hormuz and are en route to India, easing supply concerns.
Commercial LPG Allocation Raised to 50%
To support critical sectors, the government has increased commercial LPG allocation to 50%, including:
- Restaurants, dhabas, hotels
- Industrial and institutional canteens
- Food processing & dairy units
- Government-run subsidised kitchens
- 5 kg cylinders for migrant labourers
This includes an additional 20% allocation, over and above earlier relief measures, with priority distribution mandated.
PNG Push Gains Momentum
The government is aggressively pushing a transition from LPG to PNG, with strong policy backing:
- 7,500+ PNG connections issued/activated in a single day
- Incentives rolled out by CGD players like IGL, MGL, GAIL Gas & BPCL
- Fast-track approvals: PESO directed to clear applications within 10 days
- PNGRB mandates PNG connections for schools, hostels, community kitchens within 5 days
States have also been offered extra LPG allocation incentives tied to PNG expansion reforms.
Strict Monitoring to Prevent Malpractices
- 33 States/UTs have set up District-Level Monitoring Committees
- 32 States/UTs have operational control rooms
- States directed to curb:
- Hoarding
- Black marketing
- Diversion of domestic LPG
Natural Gas Supply Prioritised
- 100% supply maintained for domestic PNG and CNG transport
- Industrial/commercial gas supply maintained at ~80% levels
- CGD companies directed to prioritise:
- Hotels, restaurants, canteens
- Institutional kitchens
Kerosene & Emergency Measures
- Additional 48,000 KL kerosene allocated to States/UTs
- District-level distribution systems being activated
- Several States yet to issue allocation orders
Evacuation & Connectivity Update
- 4.02 lakh Indians evacuated/returned from the region
- Flight operations from affected areas gradually stabilising
Big Picture
Despite geopolitical disruptions, the government’s strategy rests on three pillars:
- Supply assurance (boosting refinery output, securing shipments)
- Demand management (PNG transition, controlled LPG allocation)
- Strict enforcement (anti-hoarding vigilance mechanisms)
IndianPSU Take
The Centre’s calibrated approach signals a shift toward structural energy resilience, using the crisis as a trigger to accelerate PNG adoption and reduce LPG dependency, especially in urban and commercial segments.
