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Informist, Tuesday, Mar. 17, 2026

 

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--Govt: No shortage in diesel, petrol in retail outlets 
--CONTEXT: Govt briefing media on updates on West Asia conflict 
--Govt: Told state govts to OK applications for piped gas 
--Govt: LPG supply situation concerning; no dry-out at retail outlets 
--Govt: Urge consumers to use alternate fuels wherever possible 
--Govt:Downward trend in panic-booking of LPG cylinders seen from peak on Fri 
--Govt:Have to look for all alternate energy available to manage LPG shortage 
--Govt: Want to increase use of PNG to double of 6%-6.5% currently 
--Govt: Domestic LPG production increased 38% since Mar 5 levels

 

NEW DELHI – The Centre has asked state governments and Union Territories to approve applications seeking permission for piped natural gas connection within 24 hours to manage the severe shortfall in availability of liquefied petroleum gas, Sujata Sharma, joint secretary in the petroleum and natural gas ministry, said Tuesday. The government also urged citizens to switch to alternative fuels available for domestic use, such as kerosene, to manage the situation. The government also urged consumers to use induction plates or stoves in the wake of the LPG supply shortage caused by the conflict in West Asia. 

 

The Centre's directive to state governments comes amid disruptions to cooking gas imports due to the closure of the Strait of Hormuz. LPG remains the primary cooking fuel for millions of households, and any disruption quickly affects its availability. India imports about 60% of its overall cooking gas requirements. Of this, around 90% is routed through the Strait of Hormuz.

 

"Waive off-road restoration and permission charges levied by state or local authorities," the Centre asked states in a letter dated Monday. "Relax working hours and working seasons," it said. The government aims to double the share of consumers covered by piped natural gas to around 12% from the current 6-6.5%, Sharma said. 

 

India faces supply constraints after Israel and the US launched joint military strikes on Iran on Feb. 28, prompting Tehran to hit back at Israel and at US military installations in 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.

 

Amid the serious supply disruption, the government has halted the supply of LPG cylinders for commercial use, severely affecting the hotel industry. However, the government has partially restored the sale of commercial LPG cylinders from Monday. 

 

There were no reports of LPG retail outlets or distributorships running out of gas, even though the supply situation remains a matter of concern, Sharma said.

 

Panic booking of LPG cylinders, which peaked on Friday at 8.8 million, is also showing a downward trend, with around 7.7 million on Monday. The government and oil marketing companies are taking action against hoarding and black marketing of cylinders, and till Monday, 12,000 raids have been conducted, and more than 15,000 cylinders have been seized, Sharma said. 

 

The government has also taken various other measures to boost LPG production, including asking oil marketing companies to use propane and butane solely for LPG production and restricting petrochemical production. These measures have yielded significant results, Sharma said, with domestic LPG production increasing 38% from the levels on Mar. 5. 

 

Regarding the availability of petrol and diesel, the government said that no fuel dry-ups have been reported at retail outlets and that supplies continue to be maintained regularly. India also has adequate crude oil inventories, Sharma said.   End

 

Reported by Priyasmita Dutta and Astha Oriel

Edited by Saji George Titus

 

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