Seeking to calm frayed nerves and ease pressure on cooking gas supplies, the government on Thursday announced a series of temporary measures, including rationing commercial LPG for eateries and allowing the use of alternative fuels such as kerosene, biomass and coal.
The steps come as energy supplies from West Asia remain disrupted due to the ongoing military conflict, prompting concerns across India’s hospitality sector and among consumers.
Under the new measures, commercial establishments such as hotels and restaurants will be allowed to procure only 20 per cent of their average monthly LPG consumption. The government has also increased the mandatory gap between booking two domestic LPG cylinders in rural areas from 25 days to 45 days as bookings surged amid panic buying.
The decision was taken by a three-member committee of oil marketing companies following complaints from across the country about shortages of cooking gas cylinders, even as the government insisted that overall supplies remain adequate.
Officials from the Ministry of Petroleum and Natural Gas said the government has allocated an additional 48,000 kilolitres (kl) of kerosene to states on top of the regular monthly quota of one lakh kl for use as cooking fuel.
The ministry has also asked state and Union Territory pollution control boards to allow the temporary use of biomass, RDF pellets — produced from municipal, industrial and commercial waste — and coal as alternative cooking fuels in the hospitality and restaurant sector for a period of one month.
Officials said the measures were aimed at easing immediate pressure on LPG supplies while the government works to secure additional energy cargoes from alternative sources amid the disruption in West Asia.
Despite reports of shortages, the government maintained that domestic cooking gas supplies remain stable, with about 50 lakh LPG cylinders being distributed every day.
“It’s a difficult situation. But govt is making all efforts to ensure that the supply to domestic consumers is maintained. On the distribution side, no dry retail outlet has been reported but there is a manifold increase in bookings because of the panic. We urge citizens to avoid panic booking and all efforts have to be made to conserve fuel wherever possible,” said Sujata Sharma, joint secretary, ministry of petroleum and natural gas.
She added that it will be the responsibility of states and Union Territories to identify beneficiaries for the distribution of kerosene oil.
To monitor the evolving situation, the government has also set up a three-member group of ministers headed by Home Minister Amit Shah. External Affairs Minister S. Jaishankar and Petroleum Minister Hardeep Singh Puri are the other members of the panel.
Officials said the government is also tracking consumer complaints related to LPG cylinders through the National Consumer Helpline to ensure quick redressal.
Speaking in the Lok Sabha, Petroleum Minister Hardeep Singh Puri said the Strait of Hormuz — a crucial energy transit route — had remained disrupted for the 13th consecutive day.
“For the first time in recorded history, the Strait of Hormuz has been effectively closed to commercial shipping. Despite India having no role in causing the conflict, like many countries, India has to navigate through its consequences,” Puri said.
The strait is a critical energy artery for India, through which the country receives more than half of its 5.8 million barrels per day of crude oil imports, 55 per cent of its LPG supplies and 30 per cent of its LNG.
Puri, however, said India’s crude supply position remained secure.
“The availability of petrol, diesel, aviation turbine fuel, kerosene and fuel oil is fully assured. Retail outlets across the country are stocked, and supply chains for these products are functioning normally,” the minister said.
He added that India had diversified its energy procurement and was securing cargoes from the United States, Norway, Canada, Algeria and Russia, apart from available supplies from Gulf countries.
On domestic LPG availability, Puri told Parliament that the average delivery time for cooking gas cylinders remains 2.5 days, unchanged from pre-crisis levels.
“Field reports indicate hoarding and panic booking at the distributor and retail level, driven by consumer anxiety rather than any actual supply shortage,” he said.
“The House should be clear on this: the rush-booking pressure in some localities reflects a demand distortion, not a production or supply failure,” Puri added.
Explaining the rationale behind regulating commercial LPG supplies, Puri said the segment previously operated in a completely deregulated market without any booking requirements or government subsidy.
“In a supply-constrained environment where public anxiety is elevated, this deregulated structure creates a direct and uncontrolled pathway for hoarding, diversion and resale at inflated prices… The govt has taken the responsible course: to regulate this channel with clear priorities and a transparent allocation mechanism,” he said.
