Govt Boosts LPG Output by 25% to Ensure Uninterrupted Supply Amid West Asia Tensions

New Delhi, March 2026 : The government has increased domestic production of Liquefied Petroleum Gas (LPG) by nearly 25 per cent and is directing the entire additional output towards household consumers in order to ensure uninterrupted cooking gas supply amid the evolving geopolitical situation in West Asia.

According to the Ministry of Petroleum and Natural Gas, an order was issued on March 8 directing refineries and petrochemical complexes across the country to maximise LPG production to meet domestic demand. The move is aimed at maintaining adequate supplies for households as global energy markets face uncertainty due to developments in the Middle East.

Officials said India currently imports around 60 per cent of its LPG requirement. Of these imports, nearly 90 per cent normally transit through the Strait of Hormuz, a key maritime corridor for global energy trade that has recently come under strain due to regional tensions.

To safeguard domestic consumption, the government has prioritised LPG allocation for household users. Supplies meant for non-domestic consumption are being carefully managed, with cylinders being reserved for essential institutions such as hospitals, educational institutions and other critical services.

In addition, the government has constituted a three-member committee to oversee the allocation of LPG for commercial users. The panel includes executive directors from Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited. The committee will review LPG distribution to restaurants, hotels and other commercial establishments to ensure that supplies remain fair and balanced during the current situation.

Officials also noted that the price of a domestic LPG cylinder in Delhi currently stands at Rs 913 following a recent increase of Rs 60. However, beneficiaries under the Pradhan Mantri Ujjwala Yojana continue to receive subsidised cylinders at Rs 613 each.

According to officials, the impact of the latest price revision on PMUY households remains minimal, with the additional burden amounting to less than 80 paise per day.

To support public sector oil marketing companies that supply LPG across the country, the government has also approved compensation worth Rs 30,000 crore to offset under-recoveries incurred in the sale of subsidised cylinders.

Authorities said they have observed some instances of panic booking and hoarding by consumers following concerns about possible supply disruptions. However, officials emphasised that there is no shortage of LPG and that the normal delivery cycle for domestic cylinders remains around two-and-a-half days.

To further strengthen monitoring and prevent diversion of cylinders at the distributor level, the Delivery Authentication Code (DAC) system is being expanded to cover nearly 90 per cent of LPG consumers nationwide. The system is intended to ensure that cylinders are delivered only to genuine consumers and not diverted to other uses.

As a temporary demand management measure, the government has also increased the minimum gap between LPG bookings from 21 days to 25 days.

Officials further reassured that India’s overall energy supply remains secure. The country consumes roughly 5.5 million barrels of crude oil per day and sources its imports from nearly 40 countries around the world.

Due to diversified procurement strategies adopted in recent years, nearly 70 per cent of India’s crude oil imports now arrive through routes that bypass the Strait of Hormuz, significantly reducing the risk of supply disruptions during periods of geopolitical uncertainty.