The Government of India on Saturday assured citizens that the delivery of domestic LPG cylinders across the country remains normal, despite ongoing geopolitical developments in West Asia and disruptions such as the closure of the Strait of Hormuz. The Centre stated that comprehensive measures have been undertaken to ensure energy security, maintain fuel supplies, and support Indian nationals abroad, according to an official statement from the Ministry of Petroleum and Natural Gas dated March 21, 2026.
Energy Supply and Fuel Availability
The Ministry said, In view of the closure of the Strait of Hormuz, steps have been taken to ensure stable availability of petroleum products and LPG across the country. The current position is as outlined below.
Crude/Refineries
According to the government, all refineries are operating at high capacity with adequate crude inventories, while stocks of petrol and diesel remain adequate nationwide. Domestic LPG production from refineries has also been ramped up to meet demand.
Authorities emphasized that there have been no reports of fuel shortages at retail outlets and urged the public to avoid panic buying, reiterating that supplies are stable and regularly replenished.
"No cases of fuel dry outs have been reported at any of the ROs by the Oil Marketing Companies. The Government reiterates its advice to the public not to resort to panic buying, as adequate stocks of petrol and diesel are available and supplies are being maintained regularly," the Ministry said.
LPG
In the LPG segment, officials confirmed that there have been no “dry-out” situations at distributorships. Most deliveries are being completed through the Delivery Authentication Code (DAC) system, and panic bookings have significantly declined. The government underlined that household LPG cylinder delivery is proceeding smoothly without disruption. However, the government noted that supply of LPG is still a concern in view of prevailing geopolitical situation.
Commercial LPG supply
The government has progressively restored partial Commercial LPG supply, increasing allocation to 50 percent, with priority given to essential sectors such as hospitals, educational institutions, restaurants, and community kitchens. Additional allocations have also been offered to states that facilitate the transition to piped natural gas (PNG).
The official statement is as follows:
The government has already restored Partial Commercial LPG supply (20 percent) to consumers. Further, Government of India vide letter dated March 18, 2026 has proposed to allocate additional 10 percent of Commercial LPG to States/UTs based on ease of doing business reforms for PNG expansion.
Government of India vide letter dated March 21, 2026 has allowed another 20 percent allocation of commercial LPG to States, which would take overall allocation to 50 percent (including 10 percent allocation based on ease of doing reforms for PNG expansion). This additional 20 percent allocation shall be given on priority to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by State Government or local bodies for food, community kitchens, 5 Kg FTL for migrant labourers.
According to the official release, 20 States/UTs have issued orders to allocate the Non-domestic LPG in line with the guidelines issued by the Government of India. For rest of the States/UTs, PSU Oil Marketing companies are releasing Commercial LPG cylinders. A total of around 13,479 MT has been uplifted during last one week by commercial entities in the States/UTs.
Educational institutions and hospitals have been prioritised, and around 50 percent of the total commercial LPG allocation is going to these sectors.
Kerosene
To reduce pressure on LPG demand, the government has promoted alternative fuel options, including PNG, kerosene, and coal. City Gas Distribution companies have been directed to prioritise PNG connections, especially for commercial establishments, and to expedite approvals.
Multiple ministries and state governments have also been instructed to fast-track infrastructure clearances and encourage a shift to PNG wherever feasible.
An additional allocation of 48,000 KL of kerosene, over and above the regular allocation, has been made to all States/UTs. States/UTs have been requested to identify locations within districts for kerosene distribution.
The government said 15 States/UTs have issued SKO allocation orders. Further, Himachal Pradesh and Ladakh have communicated that there is no SKO requirement in their regions. As of now, 17 States/UTs are yet to issue SKO allocation orders.
Enforcement Action
On the enforcement front, both central and state authorities have intensified action against hoarding and black marketing. Over 3,500 raids have been conducted across several states, leading to the seizure of around 1,400 LPG cylinders.
Oil Marketing Companies have also carried out surprise inspections at more than 2,000 retail outlets and distributorships to ensure compliance and smooth supply, and to check any hoardings/black marketing cases.
State governments have been advised to maintain strict vigilance under the Essential Commodities Act and related laws. So far, 32 states and Union Territories have set up control rooms and district-level monitoring committees, with daily reviews and public advisories being issued to prevent misinformation and panic.
Other Government Measures
Despite this war situation, the Government said it has given the highest priority to Domestic LPG and PNG, along with high priority to hospitals and educational institutions.
The Government has already implemented several rationalisation measures on both the supply and demand side, including enhancing refinery production, increasing the booking interval from 21 to 25 days in urban areas and up to 45 days in rural areas and prioritising sectors for supply.
Alternative fuel options like kerosene and coal have been offered to ease pressure on LPG demand. The Ministry of Environment, Forest and Climate Change (MoEFCC) has advised State Pollution Control Boards to permit the use of kerosene and coal as alternative fuels.
The Ministry of Coal has issued orders to Coal India and Singareni Collieries to allot higher quantities to States for distribution to small, medium, and other consumers.
New PNG connections
Furthermore, states have been advised to facilitate the new PNG connections for both domestic and commercial consumers. A proposal for an additional 10 percent allocation of commercial LPG has been made for States that facilitate and expedite this process.
"Citizens are encouraged to use alternate fuels such as PNG and electric/induction cooktops, and to adopt energy conservation practices in daily usage," the Ministry highlighted.
Maritime Safety and Shipping Operations
In addition to domestic measures, the government said it is closely monitoring maritime operations and the safety of Indian seafarers in the Gulf region.
The Ministry of Ports, Shipping and Waterways reported that shipping and port operations remain stable, with no congestion or major incidents involving Indian vessels in the past 24 hours. Over 534 Indian seafarers have been repatriated so far, and a 24x7 control room continues to assist those in need.
Safety of Indian Nationals in the Region
The Ministry of External Affairs is also actively coordinating with Indian missions in West Asia to ensure the safety of Indian nationals. Since late February, approximately 3.3 lakh passengers have returned to India from the region.
Special flight arrangements and alternative travel routes are being facilitated amid airspace restrictions in certain countries. Fifteen Indian crew members of MT Safesea Vishnu have safely returned to India from Iraq.
"Prime Minister Narendra Modi spoke today with President of Iran, Dr. Masoud Pezeshkian, extending Eid and Nowruz greetings; both leaders discussed the West Asia situation, expressed hope for peace and stability, condemned attacks on critical infrastructure impacting global supply chains, reiterated the need to keep shipping lanes open and secure, and appreciated Iran’s support for Indian nationals."
"Prime Minister spoke yesterday with the King of Bahrain, His Majesty King Hamad Bin Isa Al Khalifa, and exchanged Eid al-Fitr greetings; the two sides reviewed the situation in West Asia, strongly denounced attacks on energy and civilian infrastructure impacting global food, fuel and fertilizer security, stressed the need for uninterrupted maritime movement, and acknowledged His Majesty’s continued support for the well-being of the Indian community in Bahrain," the Ministry highlighted.
Conclusion
The government reiterated its commitment to ensuring an uninterrupted supply of essential fuels and safeguarding citizens’ interests. It advised the public to rely only on official information, avoid unnecessary bookings, and opt for home delivery and digital booking systems.
Citizens were also encouraged to adopt energy conservation practices and consider alternative fuel options where available.
