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Government increases commercial LPG allocation to States, prioritises key sectors and promotes PNG expansion.

FWM by FWM
March 22, 2026
in National
0

Updates on Key Sectors in View of Developments in West Asia

Delivery of domestic LPG cylinders remains normal; Panic Bookings reduce
Government increases commercial LPG allocation to States, prioritises key sectors and promotes PNG expansion
Educational Institutions and Hospitals prioritised in Commercial LPG allocation
States advised to facilitate new PNG connections for both domestic and commercial consumers
Raids continue across States/UTs to curb LPG hoarding and black marketing
Port operations across India remain normal with no congestion
Developments in Gulf and West Asia continue to be closely monitored; safety of Indian community remains top priority

: 22 MAR 2026 4:12PM by PIB Delhi

In view of the evolving situation in West Asia, the Government of India continues to take proactive steps to ensure preparedness and response across critical sectors. Updates on measures relating to energy supply, maritime operations, and assistance to Indian nationals in the region are outlined below.

Energy Supply and Fuel Availability

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 follows:

Crude/Refineries

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· All refineries are operating at high capacity, with adequate crude inventories in place. The country is also maintaining sufficient stocks of petrol and diesel.

· Domestic LPG Production from refineries has been maximised.

Retail Outlets

· 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.

Natural Gas

· Priority sectors have been protected for their supplies incl. 100% supply to D-PNG and CNG-Transport. Supplies to industrial & commercial consumers connected on grid is at 80% of their average consumption.

· CGD entities have also been advised by Govt. of India to prioritize PNG connections for commercial establishments such as restaurants, hotels and canteens across all their Gas, to address concerns regarding the availability of commercial LPG.

· CGD Companies like IGL, MGL, GAIL Gas and BPCL have offered incentives for taking domestic and Commercial PNG connections.

· CGD entities have been directed by PNGRB to shorten the timeline between the submission of applications and the commencement of gas supply to consumer households.

· Govt. of India vide letter date 16.03.2026 has requested Govt. of States/UTs to expedite approval of applications required for expansion of CGD network.

· Govt. of India vide letter dated 18.03.2026 has offered all States/UTs additional 10% allocation of commercial LPG to States provided they can help in long term transition from LPG to PNG.

· In addition, the Govt. of India vide letter dated 19.03.2026 have requested all concerned Central Govt. Ministries-

Ø To issue necessary directions to the concerned Department/Bodies for immediate fast tracking and disposal of all pending and new permissions related to CGD infrastructure.

Ø All Central Govt. establishments/Colonies/Officers/Canteens may also be advised to switch over to PNG wherever the same is available.

· Govt. of India vide letter dated 20.03.2026 has requested all Central Govt. Ministries to undertake a comprehensive assessment of potential demand for PNG connections in establishments under various Ministries/Departments of the Govt. of India and to designate a nodal officer from each Ministry/Department to coordinate this exercise.

· In response to above Govt. of India letter, Petroleum and Explosive Safety Organisation (PESO) has advised all its offices to dispose off CGD applications on priority i.e., within 10 days of receipt.

· Commercial LPG consumers in the major cities and urban area have been requested to switch to PNG.

LPG

· Supply of LPG is still a concern in view of prevailing geopolitical situation.

Domestic LPG Supply:

· No reported dry-out at LPG distributorships.

· Majority of the Deliveries are happening via Delivery authentication code (DAC).

· Panic bookings have reduced.

· Delivery of Domestic LPG Cylinders is normal.

Commercial LPG supply:

· Government had already restored Partial Commercial LPG supply (20%) to consumers. Further, Govt. of India vide letter dated 18.03.2026 had proposed to allocate additional 10% of Commercial LPG to States/UTs based on ease of doing business reforms for PNG expansion.

· Govt. of India vide letter dated 21.03.2026 has allowed another 20% allocation of commercial LPG to States, which would take overall allocation to 50% (incl. 10% allocation based on ease of doing reforms for PNG expansion). This additional 20% allocation shall be given on priority to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by State Govt. or local bodies for food, community kitchens, 5 Kg FTL for migrant labourers.

· 20 States/UTs have issued orders to allocate the Non-domestic LPG in line with the guidelines issued by the Govt. of India. For rest of the States/UTs, PSU Oil Marketing companies are releasing Commercial LPG cylinders. A total of around 15,440 MT has been uplifted during last 8 days by commercial entities in the States/UTs.

· Educational Institutions and Hospitals have been prioritised and around 50% of the total commercial LPG allocation is going to these sectors.

Kerosene

· Additional allocation of 48000 KL of Kerosene over and above the regular allocation has been made to all the States/UTs.

· States/UTs have been requested to identify locations in districts for distribution of kerosene.

· 15 States/UTs have issued SKO allocation orders. Further, Himachal Pradesh and Ladakh has communicated that there is no SKO requirement in the State/UT. As on date, 17 States/UTs are yet to issue SKO allocation orders.

Role of State/UTs Governments

· Under Essential Commodities Act, 1955 and LPG Control Order, 2000, State Govt. are empowered to act against any hoarding and black marketing. Govt. of States/UTs have to play a primary role in monitoring and regulating supply situation of essential commodities including Petrol, Diesel and LPG.

· Govt. of India vide letter dated 13.03.2026 and 18.03.2026 has requested all States/UTs –

Ø To maintain strict vigilance so as to curb hoarding, black marketing, diversion of domestic LPG and other malpractices.

Ø To take stringent action against violators under the provisions of Essential Commodities Act, 1955, Petroleum Act, 1934, Petroleum Rules 2002, Motor Spirit and HSD order 2005 and other applicable laws.

Ø To evolve appropriate distribution methodologies for commercial LPG, keeping in view local priorities and requirements.

Ø To issue public advisories to prevent panic buying, encourage judicious use of LPG and dissemination of accurate information.

· 32 States/UTs have setup control rooms. Many of the States/UTs are doing daily press briefs also.

· 32 States/UTs have setup District Level Monitoring Committee.

· All those States/UTs who have not setup Control rooms and District Monitoring committees are requested to do so on urgent basis.

Enforcement action

· Raids continue to be carried out in many of the States/UTs to check the hoardings and black marketing of LPG. About 3,500 raids have been conducted and more than 1200 cylinders have been seized in Bihar, Haryana, Karnataka, Tamil Nadu, Uttar Pradesh etc. yesterday.

· All the States/UTs govt. are requested to conduct regular raids so that black marketing and hoardings can be arrested.

· PSU OMCs officials have conducted surprise inspections at more than 1,800 RO and LPG distributorships across the country to ensure smooth supplies and to check any hoardings/black marketing cases.

Other Government Measures

· Despite this war situation, Government’s has given 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.

· Alternate fuel options like Kerosene and coal have been offered to ease pressure on LPG demand. MoEFCC has already advised State Pollution Control Board for permitting the use of kerosene and coal as alternate use.

· Ministry of Coal has already issued order to Coal India and Singareni Coallieries to allot higher quantities to States for distributing coal to small, medium and other consumers.

· States have been advised to facilitate the new PNG connections for both domestic and commercial consumers.

Public Advisory

· Government is making all efforts to ensure availability and timely delivery of LPG cylinders to all households; citizens are advised to rely only on official sources and avoid rumours.

· Consumers are requested to avoid panic bookings, use digital modes for booking, and not visit LPG distributors, as home delivery is being ensured despite isolated instances of queues.

· Citizens are encouraged to use alternate cooking options such as PNG and electric/induction cooktops, and to adopt energy conservation practices in daily use.

Maritime Safety and Shipping Operations

Necessary measures have been put in place to safeguard Indian vessels and seafarers operating in the region. As per Ministry:

· Ministry of Ports, Shipping and Waterways is closely monitoring shipping movements, port operations and safety of Indian seafarers, while ensuring continuity of maritime trade.

· All Indian seafarers in the region are safe; no incident involving Indian-flagged vessels has been reported in the past 24 hours.

· 22 Indian-flagged vessels with 611 Indian seafarers remain in the western Persian Gulf; DG Shipping is monitoring the situation in coordination with ship owners, RPSL agencies and Indian Missions.

· DG Shipping Control Room is operational 24×7, having handled 3,730 calls and 7,058 emails so far, including 60 calls and 129 emails in the last 24 hours.

· Over 547 Indian seafarers have been safely repatriated, including 13 in the past 24 hours.

· Port operations across India remain normal with no congestion; State Maritime Boards have confirmed smooth functioning.

· The Ministry continues close coordination with MEA, Indian Missions and maritime stakeholders to ensure seafarer welfare and uninterrupted operations.

Safety of Indian Nationals in the Region

Indian Missions remain in touch with the community, providing assistance and issuing advisories, the Ministry informed. As informed by Ministry:

· Ministry of External Affairs continues to monitor closely the developments in the Gulf and West Asia region, with safety, security and welfare of the Indian community as the highest priority; a dedicated 24×7 control room remains operational, with regular coordination with States/UTs.

· Missions and Posts across the region are functioning round the clock, operating helplines, maintaining contact with Indian community organisations, issuing advisories, engaging with local Governments, and assisting seafarers, students, stranded nationals and short-term visitors.

· Since 28 February, over 3,50,000 passengers have returned from the region to India.

· Around 90 flights are expected to operate today from UAE; flights continue to operate from Saudi Arabia and Oman to India; with partial reopening of airspace, Qatar Airways is expected to operate around 9–10 non-scheduled commercial flights to India today.

· Kuwait airspace remains closed; Jazeera Airways has started flight operations to various destinations in India from Al Qaisumah Airport (AQI) in Saudi Arabia.

· Bahrain airspace remains closed; Gulf Air continues to operate special non-scheduled commercial flights from Dammam Airport of Saudi Arabia to India.

· In view of flight restrictions from Kuwait, Bahrain and Iraq, travel of Indian nationals is being facilitated via Saudi Arabia.

· Six Indian nationals have lost their lives and one remains missing; Missions in Saudi Arabia, Oman, Iraq and UAE are in touch with the concerned authorities regarding the missing Indian national and for early repatriation of mortal remains of the deceased Indian nationals.

******

FWM

FWM

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