LPG Supply Steady Despite 'Concerning' Crisis; Govt Mandates LPG Surrender For All PNG Subscribers

The government on Monday said India’s fuel supply remains stable despite rising global oil prices, while acknowledging growing pressure on the cooking gas supply chain and announcing stricter rules on LPG usage.

Speaking at a press briefing, officials from the Ministry of Petroleum and Natural Gas said that although global energy markets are volatile, domestic fuel availability remains adequate. The statement comes as Brent crude oil climbed above $104 per barrel, raising concerns over supply disruptions in international markets.

However, the government acknowledged challenges in the LPG distribution system and urged households to avoid unnecessary stockpiling. “The situation with LPG is concerning, and we have to ensure cylinders reach households that genuinely depend on them,” said Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas

Refineries Running at Full Capacity

Officials stressed that India’s fuel infrastructure is operating normally, with refineries running at maximum capacity to meet domestic demand.

Major oil marketing companies including Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited are currently operating their refineries at close to 100% utilisation. “There is no shortage of petrol or diesel in the country. Our refineries are running at full capacity and supply across retail outlets remains normal,” Sharma said.

Authorities also dismissed rumours of shortages circulating on social media, noting that India’s network of nearly 100,000 fuel retail outlets continues to operate without disruption.

PNG Households Asked to Surrender LPG Connections

To ease pressure on LPG supplies, the government has implemented new rules under the LPG (Regulation of Supply and Distribution) Amendment Order, 2026. Households that already have access to Piped Natural Gas (PNG) will now be required to surrender their LPG connections, and such consumers will not be permitted to book LPG refills going forward. 

The step is aimed at ensuring cooking gas cylinders remain available for households that rely exclusively on LPG. “If a household already has PNG connectivity, there is no reason to hold an LPG connection as well. We cannot allow parallel use when supply has to be prioritised,” said Sharma. The move is also intended to reduce reliance on imported LPG, a significant portion of which typically passes through the Strait of Hormuz, a key global shipping route currently under geopolitical strain.

Enforcement agencies have stepped up action against illegal hoarding and resale of LPG cylinders following reports of panic buying. “There have been instances of black marketing in some areas, and strict action is being taken against those involved,” Sharma added. Authorities confirmed that enforcement teams have already conducted raids in several regions, including Maharashtra, where multiple cylinders were seized during an anti-hoarding operation. Monitoring will continue to ensure cylinders reach households that rely on them as their primary cooking fuel.

Fuel Shipments Continue Amid Global Tensions

Despite tensions affecting energy shipping routes, the government said LPG cargo shipments are continuing to arrive at Indian ports. Several vessels carrying LPG supplies are scheduled to dock in the coming days at Mundra Port and Kandla Port, while maritime agencies are closely monitoring the safe movement of energy cargo through the Strait of Hormuz.

Additional storage buffers have also been activated at Jawaharlal Nehru Port to manage cargo flows and minimise potential supply disruptions. “We are closely monitoring the shipping situation and ensuring that fuel cargo reaches Indian ports safely,” Rajesh Kumar Sinha, Special Secretary, Ministry of Ports, Shipping and Waterways.

Also read: Beyond Panama Canal: Axis Bank CEO Weighs India's Hormuz Alternatives