Govt Offers Extra LPG Allocation, Pushes Shift to PNG Amid Stable Fuel Supply

New Delhi, March 2026 : The government on Wednesday announced an additional 10 per cent allocation of commercial LPG to States and Union Territories, linking the move to reforms aimed at encouraging a transition from LPG to piped natural gas (PNG).

The Ministry of Petroleum and Natural Gas said the decision is part of a broader strategy to ensure energy security while promoting cleaner and more efficient fuel alternatives. It also reassured citizens that India’s fuel supply remains stable despite prevailing geopolitical uncertainties.

According to the ministry, all domestic refineries are currently operating at high capacity with sufficient crude oil inventories. Domestic LPG production has also been ramped up by nearly 40 per cent, strengthening supply across the country.

“There is sufficient production of petrol and diesel in India, and no imports are required to meet domestic demand,” the ministry said in an official statement, adding that supply chains remain robust and uninterrupted.

LPG distribution is being closely monitored, and officials confirmed that cylinder deliveries are continuing without disruption. No instances of shortages or “dry-outs” have been reported at distributorships so far.

The government also highlighted improvements in transparency and efficiency in LPG delivery. Online booking of LPG cylinders has increased significantly from 83 per cent to 93 per cent, while the coverage of Delivery Authentication Codes—aimed at preventing diversion—has expanded from 53 per cent in February to around 81 per cent currently.

As an additional measure, 48,000 kilolitres of kerosene have been allocated to States and UTs as an alternative cooking fuel. Authorities have been asked to identify suitable distribution points to ensure smooth access.

Fuel availability at retail outlets remains stable, with oil marketing companies reporting no shortages of petrol or diesel. The government has urged citizens to avoid panic buying, assuring that adequate stocks are available nationwide.

Priority sectors continue to receive uninterrupted gas supplies. Domestic PNG connections and CNG used in transport are being supplied at 100 per cent capacity, while industrial and commercial users are receiving around 80 per cent of their requirements.

To further promote cleaner energy, commercial LPG users—including hotels, restaurants, hospitals, and hostels—are being encouraged to switch to PNG. Companies such as Indraprastha Gas Limited, Mahanagar Gas Limited, GAIL Gas Limited, and Bharat Petroleum Corporation Limited are offering incentives to facilitate this transition.

The government is also expanding the City Gas Distribution (CGD) network to increase PNG accessibility across urban and semi-urban areas. CGD entities have been directed to prioritise critical sectors such as seed drying units and cold storage facilities, ensuring uninterrupted operations.

Officials said the combined measures aim to maintain supply stability while accelerating India’s shift towards cleaner and more sustainable energy solutions.