India has ramped up domestic LPG production by 25 per cent and redirected the entire output towards household consumers as the government moves to cushion the country from a potential cooking gas supply crisis triggered by rising tensions in West Asia and disruptions around the vital Strait of Hormuz.
At an inter-ministerial briefing on the recent developments in West Asia held at the National Media Centre on Thursday, officials said the government has taken emergency measures to secure cooking gas supplies. Notably, India imports nearly 60 per cent of its LPG needs, with about 90 per cent of those imports passing through the Strait of Hormuz, a route now under strain amid the ongoing regional crisis.
Senior officers from the Ministry of Petroleum and Natural Gas, the Ministry of External Affairs, the Ministry of Ports, Shipping and Waterways, and the Ministry of Information and Broadcasting briefed the media on the preparedness measures and steps being taken by the Government of India in response to the evolving situation in the region. The briefing provided updates on energy supply preparedness, maritime safety, welfare of Indian nationals abroad and communication measures being undertaken by the Government.
LPG Supply and Availability
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India imports about 60 percent of its LPG consumption and out of these imports about 90 percent come through the Strait of Hormuz, which has been impacted due to current happenings.
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On 8 March 2026, the Government issued an order directing refineries and petrochemical complexes to maximise LPG production by diverting propane, butane, propylene and butenes streams to the LPG pool. As a result of these measures, domestic LPG production has increased by about 25 percent and the entire domestic LPG production is being directed towards household consumers.
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For non-domestic LPG, priority is being given to essential sectors such as hospitals and educational institutions.
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A three-member committee of Executive Directors from IOCL, HPCL and BPCL has been constituted to review allocations to restaurants, hotels and other commercial users and to ensure fair and transparent distribution of available LPG supplies.
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The current price of a domestic LPG cylinder in Delhi is ₹913 after a recent ₹60 increase. For PMUY beneficiaries the price remains ₹613 per cylinder.
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For a PMUY household, the recent increase translates to less than 80 paise per day.
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Even though the Saudi Contract Price has increased by about 41 percent since July 2023, the PMUY price has fallen by about 32 percent during the same period due to government support.
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The Government has approved ₹30,000 crore compensation for oil marketing companies for LPG under-recoveries.
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Field feedback indicates some panic booking and hoarding behaviour. However, the normal delivery cycle for domestic LPG remains about 2.5 days and consumers have been advised not to rush-book cylinders.
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The Delivery Authentication Code (DAC) system is being expanded to about 90 percent of consumers to prevent diversion at the distributor level.
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As a temporary demand-management measure, the minimum gap between LPG bookings has been increased from 21 days to 25 days.
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Oil marketing companies and enforcement teams are coordinating at the field level to clear distributor backlogs and ensure smooth deliveries.
The Government is continuously monitoring the global situation and taking necessary steps to ensure uninterrupted fuel supplies and protect households and priority sectors.