In March 2026, geopolitical tensions in West Asia have disrupted shipping through the Strait of Hormuz, a critical route for nearly 90% of India’s LPG imports. As the world’s second-largest importer of liquefied petroleum gas (LPG), India relies on imports for about 60% of its total consumption, with the rest met through domestic refining. Amid these global headwinds, concerns over potential shortages have surfaced. Yet the Indian government has acted swiftly and decisively to protect household access to cooking gas. Through a series of targeted measures under the Essential Commodities Act, the domestic LPG supply chain has remained fully operational, with no reported dry-outs at distributorships and delivery timelines unchanged. Over 330 million households — including 104 million under the Pradhan Mantri Ujjwala Yojana — continue to receive uninterrupted supply.
The government’s foremost priority has been clear: India’s kitchens must not face any shortage. As Union Minister for Petroleum and Natural Gas Shri Hardeep Singh Puri stated in Parliament, “Domestic supply is fully protected and the delivery cycle is unchanged. The standard time from booking to delivery for domestic LPG cylinders remains 2.5 days, unchanged from pre-crisis norms.”
Maximising Domestic Production Through Emergency Directives
The cornerstone of the stabilisation strategy has been a rapid ramp-up in local LPG output. On 8 March 2026, the Ministry of Petroleum and Natural Gas issued the LPG Control Order, directing all refineries and petrochemical complexes to maximise LPG yields. Propane, butane, propylene, and butene streams — previously used for petrochemicals or other purposes — were diverted exclusively to the three public-sector Oil Marketing Companies (Indian Oil, BPCL, and HPCL) for domestic cooking gas.
This single directive has delivered dramatic results. Domestic LPG production has surged by 25–28% within days (with some reports indicating up to 31% increase), and every additional litre is being channelled directly to household consumers. Refineries are operating at full capacity, and private players such as Reliance Industries have aligned operations to support the national effort. The result: a significant reduction in import dependence during the crisis window.
Prioritising Households and Essential Services
Strict prioritisation has shielded domestic users. All enhanced refinery output goes exclusively to households. Hospitals and educational institutions enjoy uninterrupted priority supply. For commercial users (restaurants, hotels), a three-member committee of OMC executives has been formed to review allocations transparently. Starting immediately, 20% of average monthly commercial requirement is being released in coordination with state governments to prevent hoarding or black-marketing.
Non-domestic LPG remains available but regulated, while commercial cylinders are being distributed through state channels in 30 States and Union Territories.
Demand-Side Measures to Prevent Panic and Ensure Equity
Recognising that panic booking, not actual scarcity, was creating pressure, the government introduced calibrated demand-management tools:
- A minimum 25-day gap between subsidised refills in urban areas (extended to 45 days in rural and difficult terrains) to discourage hoarding.
- Expansion of the Delivery Authentication Code (DAC) system from 50% to 90% coverage. Consumers must now confirm receipt via a one-time mobile code, virtually eliminating undocumented diversion.
- Promotion of digital bookings (IVRS, SMS, WhatsApp, mobile apps) and Sunday openings at distributorships to ease access without crowding.
Bookings have already begun normalising — down from 88.8 lakh on 13 March to 77 lakh recently — as public confidence grows.
Encouraging Shift to Piped Natural Gas (PNG) and Alternative Fuels
To ease long-term pressure on bottled LPG, the government issued an amendment to the LPG Control Order on 14 March 2026: households with PNG connections must surrender their LPG cylinders, and new LPG connections are barred for PNG users. Commercial consumers in cities are actively encouraged to switch via simplified applications through City Gas Distribution companies.
Simultaneously, alternative fuels have been activated:
- Additional 48,000 KL of kerosene allocated through PDS and retail outlets.
- Temporary permission for biomass, RDF pellets, coal, and kerosene in hospitality and restaurant segments for one month.
- Fuel oil made available for industrial users.
These steps free up LPG for priority domestic use while maintaining overall energy continuity.
Import Diversification and Supply Chain Monitoring
While domestic production has taken the lead, imports continue. Two fresh shipments carrying 80,000 tonnes of LPG are already en route, and procurement talks with alternative sources (United States, Norway, Canada, Algeria, Russia) are progressing. Earlier long-term agreements, including 2.2 million tonnes per annum from the US, provide additional buffers.
At the ground level, coordination is robust. The Union Home Secretary has engaged Chief Secretaries of all states. District monitoring committees, surprise inspections by OMC officers, and anti-hoarding raids are underway. Control rooms operate in 22 States/UTs, with more coming online. No dry-outs have been reported anywhere.
A Reassuring Message to Citizens
The government has repeatedly urged citizens not to panic-book cylinders. “The rush-booking pressure in some localities reflects a demand distortion, not a production or supply failure,” Minister Puri emphasised. More than 50 lakh cylinders are delivered daily, exactly as before the crisis. Online booking share has risen to 87%, and awareness campaigns through media and social platforms are actively countering rumours.
Conclusion: Domestic Supply Chain Remains Fully Functional
The steps taken by the Indian government — from emergency production directives and prioritisation to demand management and multi-fuel alternatives — have successfully insulated the domestic LPG supply chain. Despite external disruptions, refineries are producing more, deliveries are on schedule, and India’s 33+ crore households continue to cook without interruption. This episode once again demonstrates the robustness of India’s energy security framework and the government’s unwavering commitment to protecting the common citizen.
As the global situation evolves, the Ministry continues round-the-clock monitoring. Citizens are advised to book only when genuinely needed, prefer digital modes, and trust official channels. The domestic LPG supply chain is not only functioning — it is being strengthened in real time to serve every Indian kitchen.