Government Steps Up Fuel Supply, PNG Push; 8 States Get Extra LPG Allocation Amid West Asia Crisis

Amid the evolving geopolitical situation in West Asia, the Government of India has rolled out a series of proactive measures to ensure uninterrupted fuel supply, support critical industries, and safeguard trade flows.

At a high-level media briefing held at the National Media Centre, multiple ministries outlined coordinated efforts spanning energy security, logistics, and citizen safety.

LPG & PNG: Major Push to Ensure Availability

• 8 States/UTs are currently receiving additional commercial LPG allocation (10%) linked to PNG reforms
• Applications from 3 more States are under consideration
• Over 55,000 PNG connections have been gasified in just 5 days
• More than 4.3 lakh 5-kg FTL LPG cylinders sold since March 23

To boost supply for critical sectors, the government has allowed C3 & C4 streams allocation for:

• Pharmaceuticals
• Food & Public Distribution
• Chemicals & Petrochemicals

This allocation is being managed under guidelines of the Centre for High Technology (CHT).

Fuel Supply Stable Despite Global Pressure

• All refineries operating at high capacity with adequate crude stocks
• Petrol and diesel supply remains normal nationwide
• Government reduced excise duty by ₹10/litre to cushion consumers
• Export levy imposed on diesel and ATF to protect domestic availability

Despite panic buying in some areas, authorities confirmed there is no shortage of fuel.

Natural Gas: Priority Allocation Continues

• 100% supply maintained for domestic PNG and CNG (transport)
• Industrial supply maintained at ~80% levels
• Urea plants receiving 70–75% supply
• CGD companies like Indraprastha Gas Limited, Mahanagar Gas Limited, GAIL Gas Limited and Bharat Petroleum Corporation Limited offering PNG incentives

Additionally:

• Fast-track approvals for CGD infrastructure introduced
• PNG rollout accelerated in schools, hostels, and defence housing

Customs Duty Relief for Petrochemical Sector

To support industry amid supply disruptions, the government has:

• Granted full customs duty exemption on critical petrochemical products

This will benefit sectors like:

• Plastics & packaging
• Textiles
• Pharmaceuticals
• Automotive components
• Chemicals & manufacturing

Trade & Export Support Measures

The Ministry of Commerce and Industry has initiated:

• Exporter facilitation mechanisms
• Logistics support
• Targeted relief measures

These steps aim to ensure continuity of trade despite disruptions.

Maritime & Citizen Safety Measures

• 975+ Indian seafarers safely repatriated so far
• 11 rescued in last 24 hours
• Ministry of External Affairs closely monitoring situation
• 6.24 lakh passengers have travelled to India since Feb 28
• Flight operations are gradually stabilising

Kerosene & PDS Support

• Additional 48,000 KL kerosene allocated
• Distribution expanded even in SKO-free regions
• 17 States/UTs have already issued allocation orders

Big Picture

The government’s multi-ministerial response reflects a balanced strategy:

• Ensuring energy security
• Supporting industry & exports
• Protecting citizens abroad
• Accelerating PNG transition

Despite global uncertainties, India’s fuel supply chain and logistics systems remain stable and responsive.