Description
India is taking strong steps to ensure a steady supply of LPG (Liquefied Petroleum Gas) and Natural Gas despite global disruptions and geopolitical tensions around the Strait of Hormuz, one of the world’s most critical oil transit routes.
To prevent shortages and maintain energy security, the Government of India has adopted a multi-pronged strategy focusing on household priority, domestic production, diversified imports, emergency legal measures, and continuous monitoring of supply chains.
1. Priority for Households
The government has prioritized LPG and PNG supplies for households over commercial and industrial users. This ensures that cooking gas remains available for millions of families.
To avoid hoarding and panic buying, the minimum gap between LPG cylinder bookings has been increased from 21 days to 25 days. State governments are also taking strict anti-hoarding actions to maintain smooth distribution.
Commercial sectors such as hotels, restaurants, and non-essential industries may face temporary restrictions so that household demand remains protected.
2. Boosting Domestic Production
Indian refineries have been instructed to maximize LPG production, leading to an estimated 25–28% increase in domestic output.
Refineries are also diverting propylene, butane, and propane streams—normally used in petrochemicals—into the LPG supply pool to strengthen cooking gas availability across the country.
3. Diversifying Import Sources
India is reducing its dependence on the Middle East by sourcing LPG from multiple countries including the United States, Norway, Canada, and Russia.
Currently, more than 70% of India’s crude and LNG imports come from regions outside the Strait of Hormuz, reducing geopolitical risk to supply chains.
4. Emergency Legal Measures
The government has invoked the Essential Commodities Act to regulate distribution and prevent misuse of LPG during the crisis.
Additionally, a Natural Gas Control Order issued on March 9, 2026 prioritizes gas allocation to essential sectors such as households, fertilizers, and power generation.
To reduce LPG consumption in commercial sectors, the government has also allowed alternative fuels like biomass, coal, and kerosene in the hospitality industry.
5. Monitoring & Infrastructure Stability
A three-member monitoring committee comprising executives from Indian Oil Corporation, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited oversees distribution and commercial demand.
The Ministry of Petroleum and Natural Gas is holding daily meetings with oil companies to ensure supply stability.
Ports across India have also been instructed to give priority berthing to LPG vessels, preventing supply delays and ensuring smooth imports.
Conclusion
Through coordinated policy actions, diversified sourcing, and strict monitoring, India is protecting the cooking gas supply for over 33 crore LPG connections. While some industrial sectors may face temporary adjustments, household energy security remains the government’s top priority.
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