New Delhi: Thirteen days after war broke out in West Asia, India’s government on Friday said there were indeed concerns about the supply and availability of cooking gas in the country due to the outages. This comes amid tensions over the key Strait of Hormuz, a vital route for energy supplies from the region, amid the Israeli-Iranian conflict.
“On LPG, I would say we are concerned, especially since a lot of our LPG (liquefied petroleum gas) imports come through the Strait of Hormuz and because of the closure there, there is some concern,” Sujata Sharma, joint secretary, marketing, petroleum refining at the Ministry of Petroleum and Natural Gas told a briefing on the Asia War in West Asia.
Domestic LPG bookings across the country have crossed 75 million per day from the pre-war 55 million due to panic among consumers, Sharma said. “However, despite this situation, no drying up has been reported at any of the 25,000 (LPG) distributors,” she added.
Alleviating concerns
For the time being, the joint secretary allayed fears of a shortage, saying pre-war levels of average daily supply across the country were around 50,00,000 LPG cylinders, which is at the same level at present.
Following concerns over cooking gas supplies, Sharma urged domestic and commercial consumers near city gas distribution infrastructure to switch to natural gas as soon as possible. The government has also directed local and highway authorities, as well as state governments, to expedite clearances for such expansion.
According to the government, about 60 million households may switch to piped natural gas (PNG) in the short term. This came a day after the government encouraged hotels and restaurants to increase the use of alternative fuels such as kerosene, coal, biomass and refuse-derived fuel (RDF) pellets, and allowed higher consumption of these fuels.
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The Ministry of Shipping has also directed the ports to allow priority berthing to LPG tankers at the country’s ports.
India has an annual LPG requirement of 31–32 million tonnes, of which about 60–65% is imported, making the country the second largest importer of LPG in the world. About 90% of its total imports come from West Asian countries, mostly Saudi Arabia, Qatar and the United Arab Emirates.
After extending the reservation deadline for household cylinder liners to 25 days across the country on March 9, the government further increased it to 45 days for rural consumers on March 12. However, those in urban areas can continue to book a war after 25 days from the previous booking.
Sharma said commercial pressure cylinders for consumers have been made available to state governments for priority distribution.
Production went up
She said that on the back of efforts to increase production, domestic LPG production from refineries has increased by more than 30% compared to the period before the outbreak of the US-Israel-Iran war.
The statement comes amid reports of consumers being unable to book cylinders and long queues outside LPG dealers to buy cylinders across the country.
“Diesel marketing companies continue to supply around 50 lakh LPG cylinders every day. All consumers are requested not to resort to panic bookings,” Sharma said.
Read also | The Center favors domestic supply of LPG as the sharp rise in oil prices increases supply risks
With PNG and compressed natural gas consumers getting 100% supply without restrictions under the Natural Gas Control Order issued on March 9, 2026 under the Basic Commodities Act, it said supplies to industrial and commercial consumers are regulated to 80% of their average consumption over the past six months.
“The PNG domestic segment consumes approximately 3.73 MMSCM (million standard cubic meters) of gas per day for which there is sufficient gas supply across the GA (geographical areas). More than 1.5 cr. PNG households in India are currently supplied with natural gas in their homes and will continue to be supplied without any hindrance,” the joint secretary said.
Consultation on
She said to allay concerns about LPG supply, the government is consulting various City Gas Distribution (CGD) entities authorized in major urban centers and towns to immediately offer new PNG connections to affected commercial and industrial consumers.
It may not be that easy. Since natural gas supplies – of which about 55% are imported – have also been affected, India’s CGD industry may also be affected. A Crisil Ratings report on Friday said CGD’s daily sales volume may decline by 8-10% amid reduced natural gas supplies to industrial and commercial consumers due to the ongoing conflict until the situation stabilizes.
Certainly, the CGD industry relies on domestic natural gas for 60% of its requirement, while imports make up the rest.
Regarding the oil stock scenario, the ministry reiterated that all refineries are currently operating at high levels and some of them are operating at more than 100% capacity and maintaining adequate oil stocks. Supplies are continuously received through diversified import sources and shipping routes, he added.
Read also | Faced with supply disruptions, the government is ordering refineries to increase LPG production
Oil prices eased somewhat on Friday after the US announced a 30-day exemption for all countries to buy Russian oil stuck in vessels. The development comes a week after the US allowed India to buy Russian crude oil loaded on vessels from March 5, offering temporary relief on the supply front.
At the time of writing, the benchmark Brent April contract on the Intercontinental Exchange was trading at $99.35 a barrel, down 1.1% from its previous close. The April West Texas Intermediate contract on the NYMEX fell 1.9% to $93.91 a barrel.
An ongoing effort
Amid the energy crisis and vessels stranded in the Persian Gulf, India has been in touch with Iranian authorities to facilitate safe passage for India-bound vessels.
On this issue, the representative of Iran’s Supreme Leader in India, Dr. Abdul Majid Hakeem Ilahi, told reporters on Friday that there had been some discussions on the matter: “And I am sure that India will benefit from oil, gas and other resources. But I think the complete solution is that world leaders must come together. They should go to the United States and convince the president and Trump that this war is unjust.”
Read also | Indian refiners are buying sanctioned Russian crude after a US waiver
On the issue of safe passage to India, news agency ANI quoted Iran’s ambassador to India Mohammad Fathali as saying, “Yes, because India is our friend. You will see it in two or three hours. We believe that Iran and India share common interests in the region…”
Prime Minister Narendra Modi on Thursday spoke to Iranian President Masoud Pezeshkian over phone and expressed deep concern over the evolving security situation in the region and reiterated India’s consistent stand that all issues must be resolved through dialogue and diplomacy.
