To counter the LPG crisis in India, 20 percent of the average monthly commercial LPG requirement will be allocated from today by oil marketing companies (OMCs) in coordination with state governments to prevent hoarding and black marketing, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said in Lok Sabha on Thursday.
Puri clarified that the regulation of commercial LPG is aimed at preventing black marketing, not penalising the hospitality sector. He noted that commercial LPG is normally sold in a fully deregulated over-the-counter market at market prices, without government subsidy, registration, booking, digital authentication, or delivery confirmation.
“In normal times, any business or individual can purchase cylinders in any quantity at the point of sale with no government control. But in a supply-constrained environment with elevated public anxiety, this deregulated structure can lead to hoarding, diversion, and resale at inflated prices,” Puri explained.
He added that the government constituted a three-member committee from IOCL, HPCL, and BPCL on 9 March 2026, which has been holding meetings with state civil supply departments and restaurant associations across the country. The committee has assessed genuine needs by geography and sector to ensure that available commercial LPG reaches genuine users first.
Alternative routes, domestic production bolster crude and gas supplies
Earlier this week, Government officials said about 70 per cent of India’s crude imports are currently arriving through alternative routes, with two additional cargoes on the way. The country consumes around 5.5 million barrels of crude per day.
Oil and gas companies have begun procuring crude and LNG via alternative channels. LNG cargoes from new sources are also being arranged, while the government has issued a natural gas control order to manage supplies and prioritise critical sectors if disruptions intensify.
LPG prioritised for households amid rising costs
LPG remains the most sensitive fuel during the crisis due to its direct impact on household cooking. India imports over 60 per cent of its LPG requirements, with 85–90 per cent typically transiting through the Strait of Hormuz. To ensure uninterrupted household supply, domestic production has been increased by about 25 per cent, with residential users prioritised over commercial consumption. Hospitals, schools, and other essential services are also given priority.
The petroleum ministry has urged consumers not to panic book cylinders. The average delivery cycle for domestic LPG remains around two and a half days. As a temporary measure, the minimum gap between bookings has been increased from 21 to 25 days.
To cushion the impact of rising import costs, the government has approved a ₹30,000 crore compensation package for oil marketing companies to cover LPG under-recoveries. Brokerage JM Financial noted that supply disruptions linked to the Iran-Israel conflict could persist for several weeks, though alternative supplies from the UAE and the US are expected to ease shortages gradually
