India ramps up 5-kg LPG supply, accelerates PNG rollout amid Middle East crisis

India has stepped up supply of smaller 5-kg LPG cylinders and accelerated the rollout of piped natural gas (PNG) connections to manage fuel availability amid disruptions caused by the Middle East conflict, with domestic supplies remaining stable, according to an official statement.

More than 13 lakh 5-kg free trade LPG cylinders have been sold since March 23, with daily sales crossing 1 lakh units, as authorities expand access for migrant workers and low-income consumers, PTI reported.





At the same time, over 4.24 lakh new PNG connections have been activated since March, with more than 30,000 consumers surrendering LPG connections as part of the transition.

The six-week-long war in West Asia has disrupted global energy supply. India relied on import of half of its crude oil, 40 per cent of its gas and 85-90 per cent of LPG from the region, all of which have been impacted.

While the country has managed to offset the shortfall in crude oil by sourcing from other regions, LPG supplies have been affected.

The government has prioritised LPG supply to domestic households, reducing supplies to commercial users such as hotels and restaurants. To bridge the gap for those without subsidised LPG connections, it has increased supply of market-priced 5-kg cylinders.

As against daily sales of about 77,000 5-kg cylinders in February before the crisis, volumes have crossed over 1 lakh per day in the last two to three weeks.

The statement said domestic LPG supplies remain stable overall, with no reported stockouts and over 52 lakh cylinders delivered on April 11.

Online bookings account for about 98 per cent of demand, while delivery authentication systems now cover 93 per cent of transactions to curb diversion.

Commercial LPG availability has been restored to about 70 per cent of pre-crisis levels, supported by targeted allocations and increased supply measures. State-run oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — are coordinating with state governments to streamline distribution.

The government has prioritised natural gas allocation, ensuring full supply for household PNG and CNG transport, while increasing supplies to fertiliser plants to about 95 per cent of recent average consumption, aided by additional LNG imports.

City gas distributors, including Indraprastha Gas Ltd, Mahanagar Gas Ltd, and GAIL Gas Ltd, have been directed to prioritise PNG connections for commercial users, as part of a broader push to shift demand away from LPG.

Refineries are operating at high utilisation with adequate crude inventories, and domestic LPG production has been stepped up. To shield consumers from rising global oil prices, the government has cut excise duty on petrol and diesel by Rs 10 per litre, while raising export levies on diesel and aviation turbine fuel to ensure domestic availability, the statement added.
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