Govt Assures Fuel Stability, Expands LPG Allocation to 70% Amid West Asia Tensions; 94,000 MT Cargo En Route

New Delhi, Sunday, March 29, 2026 — The Government of India on Sunday issued a comprehensive status update across energy, logistics, and citizen safety amid the ongoing West Asia conflict, asserting that petrol and diesel supplies remain adequate nationwide, while detailing a series of calibrated interventions to maintain stability across critical sectors.
The update comes as geopolitical disruptions, including the continued closure of the Strait of Hormuz, raise concerns over global energy supply chains. Authorities emphasized that all refineries are operating at high capacity, with sufficient crude inventories and enhanced LPG production to meet domestic demand.

Fuel Availability Stable; Panic Buying Addressed​

The government confirmed that all fuel retail outlets are functioning normally, despite instances of panic buying triggered by misinformation in select regions. Officials reiterated that adequate stocks of petrol and diesel are available across the country, urging citizens to avoid hoarding and rely only on verified information.
To ensure domestic availability, the Centre has reduced excise duty by ₹10 per litre on petrol and diesel, while imposing export levies of ₹21.5 per litre on diesel and ₹29.5 per litre on ATF.

Natural Gas Supply Prioritized; Urea Output Supported​

Natural gas allocation has been strategically prioritized, with 100% supply ensured for domestic PNG and CNG transport segments, while industrial and commercial consumers are receiving around 80% of their average consumption.
Supply to urea plants has stabilized at 70–75% of the six-month average, supported by additional sourcing of LNG and RLNG cargoes. The government has also directed industries to communicate incremental demand on a spot basis for timely allocation.
A push toward cleaner energy continues, with over 2.9 lakh PNG connections gasified in March across domestic and commercial segments, supported by accelerated approvals and regulatory reforms.

LPG Supply Strengthened; Commercial Allocation Raised to 70%​

While LPG supply remains impacted by geopolitical conditions, domestic distribution continues without disruption. The government reported:

• No dry-outs at LPG distributorships
• Over 55 lakh cylinders delivered in a single day
• Online bookings reaching 94% penetration
• Delivery authentication compliance rising to 84%

Commercial LPG allocation has been progressively increased. The latest tranche raises supply to 70% of pre-crisis levels, prioritizing sectors such as hospitality, food processing, and key industries including steel, automobile, textiles, and chemicals.

LPG Allocation Progression​

Kerosene Buffer and Enforcement Measures Intensified​

To ease pressure on LPG demand, the Centre has allocated an additional 48,000 KL of kerosene to states. Enforcement actions have also intensified, with:

• ~2,900 raids conducted
• ~1,000 LPG cylinders seized
• 480 show-cause notices issued

State governments have been directed to strengthen monitoring, conduct daily briefings, and curb misinformation.

Maritime Operations Normal; LPG Cargo in Transit​

Shipping and maritime operations remain stable, with no congestion reported at Indian ports. Two LPG carriers, BW TYR and BW ELM, carrying a combined 94,000 metric tonnes, have safely transited the region and are expected to dock at Mumbai and New Mangalore by early April.
A total of 18 Indian-flagged vessels with 485 seafarers remain in the western Persian Gulf, with authorities maintaining continuous monitoring. Over 942 seafarers have been repatriated so far.

Indian Nationals Supported; Over 5.24 Lakh Returned​

The Ministry of External Affairs confirmed that over 5.24 lakh passengers have returned to India since February 28, with flight operations continuing in a calibrated manner across regions.
Airspace restrictions persist in parts of the Gulf, but alternative travel routes via Saudi Arabia, Armenia, Egypt, and Jordan are being actively facilitated. Indian missions continue to operate 24x7 helplines, providing visa, consular, and logistical support to citizens, including students and seafarers.