More Stories

Informist, Friday, Mar. 13, 2026

 

Please click here to read all liners published on this story

--Govt: Allocated extra 48,000 kl of kerosene to mitigate fuel crunch issue 
--Govt: Domestic LPG production capacity up 30% 
--Govt: Warn LPG distributors to refrain from illegal acts of hoarding 
--Govt: Taking action against black-marketing, hoarding of LPG cylinders 
--Govt: Urge citizens to avoid panic booking of LPG cylinders 
--Govt: No dry out reported in fuel retail outlets 
--CONTEXT: Govt officials briefing media on West Asia conflict 
--Govt: Domestic-use CNG, PNG vehicles to receive 100% supply, no cuts

 

NEW DELHI – The government Friday urged domestic users with access to city gas distribution centres to shift to piped natural gas, given the constraints in the availability of liquid petroleum gas due to the West Asia conflict. "There is a constraint in the supply of LPG, and the government is taking every measure to address the situation," Sujata Sharma, joint secretary in the petroleum and natural gas ministry, said Friday. 

 

The government is also taking measures against those found indulging in illegal activities such as black marketing and hoarding, she said. If needed, the government will take further action against such illegal activities, she added.  

India faces supply constraints after Israel and the US launched joint military strikes on Iran on Feb. 28, prompting Tehran to hit back at the Jewish state and at US military installations around the Persian Gulf. Iran also shut the Strait of Hormuz, a narrow waterway that connects the Gulf to the Arabian Sea and the Indian Ocean, resulting in a sharp rise in crude oil and natural gas prices.

 

A fifth of global crude oil supply flows through the Strait of Hormuz. About half of India's crude oil imports – primarily from Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait – also pass through the strait, making the country particularly vulnerable to shipping bottlenecks there and to surging freight and insurance rates.

 

Social media and news reports showed citizens crowding the offices of LPG distributors to book cylinders. In response, the government has introduced a 'delivery authentication system' to facilitate orderly booking and curb black marketing. The central government is also in touch with state governments to check the black marketing of LPG cylinders. 

 

Oil Minister Hardeep Singh Puri said Thursday that field reports indicate hoarding and panic booking at the distributor and retail levels, driven by consumer anxiety rather than any actual supply shortage. "The rush-booking pressure in some localities reflects a demand distortion, not a production or supply failure," he had said. Sharma Friday reiterated this and urged citizens to avoid panic cylinders. 

 

India imported large volumes of LPG from West Asia, with 60% of its LPG requirements being met from Gulf countries. LPG remains the primary cooking fuel for millions of households, and any disruption could quickly affect its availability. To mitigate the cooking gas crunch, the government has allocated an additional 48,000 kilolitres of kerosene for both domestic and commercial use, Sharma said.

 

The government has taken various measures to boost LPG production, including asking oil marketing companies to use propane and butane solely for LPG production and restricting petrochemical production. The government also asked oil refineries to operate at full capacity, and some are operating at over 100%, Sharma said. Given the government steps, LPG production has increased 30%, she said. 

 

The government has also managed natural gas supply through prioritised allocation, and the position is stable, she said. As per the current allocation, domestic PNG and CNG for vehicles will receive 100% supply with no cut. Fertiliser plants will receive a 70% reduction, and refineries and petrochemical units will receive a 35% reduction so that higher-priority sectors can be protected, Sharma said.  

 

She reiterated that India is comfortably positioned in terms of its energy supply, with energy flowing in from 40 destinations. There is no dry-out reported at petrol, diesel, and other retail outlets, she said.  End

 

US$1 = INR 92.46

 

Reported by Priyasmita Dutta

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.