Govt Boosts LPG Production by 28% to Ensure Uninterrupted Supply: Hardeep Singh Puri

New Delhi, March 2026 : The government has increased domestic LPG production by 28 per cent over the past five days and is actively pursuing additional procurement to ensure uninterrupted supply across the country, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri informed Parliament on Thursday.

Addressing the House, the minister emphasised that the government’s primary priority is to ensure that the kitchens of India’s more than 33 crore households—particularly those belonging to poor and underprivileged families—do not face any disruption in cooking gas supply.

Puri said the domestic LPG supply chain remains stable and the delivery system continues to operate under normal timelines. “The standard time from booking to delivery for domestic LPG cylinders remains 2.5 days, unchanged from pre-crisis norms,” he said. He added that essential institutions such as hospitals and educational establishments have been placed under priority supply categories to ensure that they receive uninterrupted LPG access regardless of fluctuations in demand.

The minister also addressed concerns about sudden spikes in LPG bookings in certain areas. According to field reports, he said, panic-booking and hoarding at the distributor and retail levels have been observed in some locations. However, these developments are being driven primarily by consumer anxiety rather than an actual shortage of production or supply.

To improve transparency and prevent diversion of LPG cylinders, the government has expanded the Delivery Authentication Code (DAC) system. Under this mechanism, a cylinder is considered delivered only when the consumer confirms receipt through a one-time code sent to their registered mobile number. Puri said the coverage of this system is being expanded from 50 per cent of consumers to about 90 per cent, making it extremely difficult to conceal any unauthorised diversion of cylinders.

The government has also introduced a minimum gap between LPG bookings to manage demand more efficiently. In urban areas, consumers must wait at least 25 days between bookings, while in rural and remote or “durgam kshetra” regions, the interval has been fixed at 45 days. This measure is aimed at discouraging unnecessary or panic-driven bookings.

To strengthen monitoring at the ground level, Oil Marketing Company (OMC) field officers and the Anti-Adulteration Cell are working closely with LPG distributors to ensure strict enforcement of supply regulations. Additionally, the Union Home Secretary has chaired a meeting with Chief Secretaries of all states to align state-level administration with the central government’s supply and enforcement framework.

Puri also clarified the government’s approach to regulating commercial LPG supply. He said that the measures introduced are designed to prevent black marketing and ensure fair distribution, rather than penalising businesses such as restaurants and hotels.

Commercial LPG operates in a deregulated market where cylinders are sold over the counter at market rates without government subsidy. Unlike domestic LPG, the commercial segment does not require consumer registration, booking procedures, digital authentication, or delivery confirmation. According to the minister, leaving the commercial supply completely unrestricted could have led to diversion of cylinders to the grey market, affecting both genuine commercial users and domestic consumers.

To address these challenges, the government constituted a three-member committee on March 9 comprising Executive Directors from Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL). The committee has been holding consultations with state civil supplies departments and restaurant associations to assess the genuine commercial demand across different regions and sectors.

Based on its recommendations, the government has decided that Oil Marketing Companies will allocate 20 per cent of the average monthly requirement of commercial LPG from Thursday onward in coordination with state governments. This step is expected to ensure that available supplies reach genuine users while preventing hoarding and black marketing.

The minister further noted that alternative fuel options are also being explored to ease pressure on LPG and natural gas distribution channels.

On pricing, Puri explained that the current non-subsidised consumer price for LPG cylinders stands at Rs 913 following a recent adjustment of Rs 60. The market-determined price is estimated at around Rs 987 per cylinder, but the government has absorbed Rs 74 of the required adjustment arising from global price fluctuations.

As a result, the additional cost to beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) remains minimal, amounting to less than 80 paise per day. Puri also pointed out that LPG prices in neighbouring countries are significantly higher, with cylinders costing around Rs 1,046 in Pakistan, Rs 1,242 in Sri Lanka, and Rs 1,208 in Nepal.

To support the sector, the government has approved compensation of Rs 30,000 crore to Oil Marketing Companies against estimated losses of about Rs 40,000 crore during the 2024–25 financial year. The minister reiterated that the government remains committed to protecting domestic consumers and ensuring a stable LPG supply across the country.