Amid the West Asia crisis, India is ensuring energy stability with high refinery output and adequate fuel stocks. The government has cut excise duty, imposed export levies, and is securing maritime routes to maintain uninterrupted supplies of fuel.
Amid the evolving situation in West Asia, the government is maintaining continuous oversight and implementing appropriate preparedness and response measures to ensure stability across key sectors. Efforts remain focused on sustaining uninterrupted energy supplies, safeguarding maritime operations, and extending necessary assistance to Indian nationals in the region.
The Ministry of Petroleum & Natural Gas released a statement today updating important steps undertaken in these areas as on March 29, 2026.
Measures to Ensure Fuel Availability
In view of the continued closure of the Strait of Hormuz, proactive measures are being undertaken to maintain uninterrupted availability of petroleum products and LPG across the country. All refineries are operating at high capacity, with adequate crude inventories in place. The country is also maintaining sufficient stocks of petrol and diesel. Domestic LPG Production from refineries has been increased to support domestic consumption. All Retails outlets are operating normally across the country.
Government has reduced excise duty on petrol and diesel by Rs 10 per litre. Further, government has imposed export levy of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel (ATF) to ensure availability of these products in the domestic market.
There were certain rumours which led to panic buying at some retail outlets in few states, resulting in unusually high sales and heavy crowding at retail outlets. However, it is informed that there are adequate stocks of petrol and diesel available at all petrol pumps in the country. The government reiterates its advice to the public not to believe rumours.
Natural Gas Supply Management
Consumers have been prioritised with 100 per cent supplies to D-PNG and CNG-Transport. Supplies to industrial & commercial consumers connected on grid is at 80 per cent of their average consumption. City Gas Distribution (CGD) entities have also been advised by the government to prioritize PNG connections for commercial establishments such as restaurants, hotels and canteens across all their geographical areas, to address concerns regarding the availability of commercial LPG.
Supply to operating urea plants is now steady at around 70-75 per cent of their last 6-month average consumption. Additional LNG cargoes and Regasified LNG (RLNG) are also being sourced to maintain the supplies and pipeline hydraulics. All industrial consumers including fertilizer plants have been advised to provide their additional requirement on spot basis so that the same may be arranged by the gas marketing companies.
Promoting PNG Connections
CGD Companies like IGL, MGL, GAIL Gas and BPCL have offered incentives for taking domestic and Commercial PNG connections. Government has requested States/UTs and Central Ministries to expedite approval of applications required for expansion of CGD network.
Government has offered all States/UTs additional 10 per cent allocation of commercial LPG to States provided they can help in long term transition from LPG to PNG. Subsequently, MoPNG has received applications from multiple States who have taken steps towards reforms for promoting CGD network. Accordingly, additional allocation for some of the States has been recommended.
PNGRB has directed all CGD entities to make all out efforts to connect residential schools & colleges, hostels, community kitchens, anganwadi kitchens etc. through PNG within 5 days, wherever pipeline infrastructure is available in near vicinity.
Accelerating Gas Infrastructure Development
Ministry of Road, Transport & Highways has stated that they have adopted “Accelerated Approval Framework for CGD Infrastructure with reduced timelines” as a special measure for 3 months wherein applications pertaining to CGD infrastructure shall be processed on priority.
Government has notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026 under the Essential Commodities Act, 1955. The Order provides a streamlined and time-bound framework for laying and expanding pipelines across the country, addressing delays in approvals and access to land, and enabling faster development of natural gas infrastructure, including in residential areas. It is expected to accelerate PNG network growth, enhance last-mile connectivity, and support the transition to cleaner fuels, thereby strengthening energy security and advancing India’s gas-based economy.
Ministry of Defence has issued a short-term policy modification, effective until June 30, 2026, to expedite the installation of PNG infrastructure in all residential areas/unit lines of defence. During the month of March, more than 2.9 Lakh connections incl. domestic, commercial, hostel, mess, canteen etc. have been gasified.
LPG Supply and Distribution Measures
Supply of LPG is affected due to prevailing geopolitical situation. However, no reported dry-out at LPG distributorships. Online LPG cylinder bookings increased to 94 per cent on industry basis yesterday. To prevent diversion at the distributor level, Delivery Authentication Code (DAC) based deliveries have been increased from 53 per cent (Feb-2026) to 84 per cent yesterday. More than 55 Lakh LPG refills were delivered yesterday. Delivery of Domestic LPG Cylinders is normal.
Commercial LPG Allocation
Government had already restored Partial Commercial LPG supply (20%) to consumers. Further, Government had proposed to allocate additional 10 per cent of commercial LPG to states/UTs based on ease of doing business reforms for PNG expansion. Government has allowed another 20 per cent allocation of commercial LPG to states, which would take overall allocation to 50 per cent (incl. 10% allocation based on ease of doing reforms for PNG expansion).
This additional 20 per cent allocation shall be given on priority to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by State Government or local bodies for food, community kitchens, 5 Kg FTL for migrant labourers.
Government has decided to allocate an additional 20 per cent for commercial LPG (this would bring the total commercial allocation to 70% of the pre-crises level incl. 10% reform based). This additional 20 per cent allocation would be given to industries with priority to steel, automobile, textile, dye, chemicals and plastics. Among this, priority shall be given to process industries or those requiring LPG for specialised heating purposes that cannot be substituted by natural gas.
State-Level Coordination and Enforcement
28 States/UTs have issued orders to allocate the Non-domestic LPG in line with the guidelines issued by the Govt. of India. For rest of the States/UTs, PSU Oil Marketing companies are releasing Commercial LPG cylinders. A total of 39368 MT has been uplifted since 14th March 2026 by commercial entities in the States/UTs.
Additional allocation of 48000 KL of Kerosene over and above the regular allocation has been made to all the States/UTs. States/UTs have been requested to identify locations in districts for distribution of kerosene. 17 States/UTs have issued SKO allocation orders. Further, Himachal Pradesh and Ladakh has communicated that there is no SKO requirement in the State/UT.
Under Essential Commodities Act, 1955 and LPG Control Order, 2000, State Govt. are empowered to act against any hoarding and black marketing. Govt. of States/UTs have to play a primary role in monitoring and regulating supply situation of essential commodities including Petrol, Diesel and LPG. Govt. of India has reiterated the same via multiple letters and VCs to all States/UTs.
All Chief Secretaries, ACS/Principal Secretary/Secretary Food & Civil supply of all the States/UTs are requested – – To institutionalize daily press briefings at State/District level and issue regular public advisories. – To setup dedicated control rooms/helplines – To actively monitor and counter fake news / misinformation on social media. – To intensify daily enforcement drives by District administrations and to continue raids and inspections in coordination with OMCs – To issue Commercial LPG allocation orders within their States/UTs – To issue SKO allocation orders for additional SKO allotted to the States/UTs. – To fast track CGD expansion incl. expediting RoW/RoU permissions, 24×7 work permissions etc. – To promote PNG adoptions and alternate fuels. – To nominate senior nodal officers for coordination with MoPNG
Government has again requested Chief Secretaries of all States/UTs to conduct daily press briefs and active social media/electronics media updates to disseminate correct information and eliminate rumour mongering. Currently, 14 States/UTs are carrying out daily press briefs.
Raids continue to be carried out in many of the States/UTs to check the hoardings and black marketing of LPG. About 2900 raids have been conducted, and about 1000 cylinders have been seized yesterday. PSU OMCs officials have conducted surprise inspections at more than 1200 RO and LPG distributorships yesterday across the country to ensure smooth supplies and to check any hoardings/black marketing cases. PSU OMCs have issued about 480 show cause notices to LPG distributorships till date.
Public Advisory and Conservation Efforts
Despite this war situation, government has given highest priority to Domestic LPG and PNG, along with high priority to hospitals and educational institutions. The government has already implemented several rationalisation measures on both the supply and demand side, including enhancing refinery production, increasing the booking interval from 21 to 25 days in urban areas and up to 45 days in rural areas and prioritising sectors for supply. Alternate fuel options like kerosene and coal have been offered to ease pressure on LPG demand. Ministry of Coal has already issued order to Coal India and Singareni Coallieries to allot higher quantities to States for distributing coal to small, medium and other consumers.
States have been advised to facilitate the new PNG connections for both domestic and commercial consumers. Government is making all efforts to ensure availability of Petrol, Diesel and LPG. Government has also advised to avoid panic purchase of petrol, diesel and booking of LPG. Citizens are advised to beware of rumours and rely on official sources for correct information. For LPG, citizens are requested to use digital mode for bookings, avoid visiting LPG distributors. Citizens are requested to use alternate fuels like PNG, induction/electric cooktops etc. In the current situation, all citizens are requested to make necessary efforts to conserve energy in their daily usage.
Maritime Safety and Seafarer Welfare
Necessary measures have been instituted to ensure the safety and security of Indian vessels and seafarers operating in the region, the Ministry of Ports, Shipping and Waterways has informed. All Indian seafarers in the region are safe, and no incident involving Indian-flagged vessels has been reported in the past 24 hours.
Two LPG carriers, BW TYR and BW ELM, carrying combined LPG cargo of about 94,000 MT have safely transited the region and moving towards India shores. A total of 18 Indian-flagged vessels with 485 Indian seafarers remain in the western Persian Gulf region. The Directorate General of Shipping (DG Shipping), in coordination with ship owners, RPSL agencies, and Indian Missions, is actively monitoring the situation.
The DG Shipping Control Room remains operational 24×7 and has handled 4523 calls and 8,985 emails since activation. In the past 24 hours, 92 calls and 120 emails have been received. DG Shipping has facilitated safe repatriation of over 942 Indian seafarers so far, including 4 in the last 24 hours.
Port operations across India remain normal, with no congestion reported. State Maritime Boards of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, and Puducherry have confirmed smooth functioning. The Shipping Ministry continues to coordinate with the Ministry of External Affairs, Indian Missions, and maritime stakeholders to ensure seafarer welfare and uninterrupted maritime operations. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)