India's Fuel Supply Holds Strong: Govt Reveals Massive LNG Push and Record LPG Deliveries Despite West Asia Jitters

India's Fuel Supply Holds Strong: Govt Reveals Massive LNG Push and Record LPG Deliveries Despite West Asia Jitters​

Energy Sector Remains Prioritised Amid West Asia Developments​

The Government of India is maintaining close monitoring of the evolving situation in West Asia, enacting coordinated measures across critical infrastructure. Energy supply and fuel availability are key areas of focus to ensure uninterrupted operations. The Ministry of Petroleum and Natural Gas confirmed that despite geopolitical developments affecting the Strait of Hormuz, measures are in place to safeguard domestic supply.

In a major move to boost cleaner alternatives, efforts are accelerating the transition to natural gas. Since March 2026, more than 4.24 lakh PNG connections have been successfully gasified. Furthermore, over 4.66 lakh customers have registered for new PNG connections, underpinning the push for energy self-reliance.

Intensified Enforcement Quashes Black Marketing of Fuel Products​

Enforcement action against illegal fuel trading remains vigorous nationwide. On 11.04.2026, over 2700 raids were conducted across the country to curb hoarding and black marketing. PSU Oil Marketing Companies are actively intensifying surprise inspections, resulting in penalties imposed on 219 LPG distributorships and the suspension of 56 distributorships to date.

Domestic LPG and PNG Networks Show Strong Resilience​

The domestic LPG supply chain is reporting stability, with no dry-outs reported at LPG distributorships. On 11.04.2026, more than 52.3 lakh domestic LPG cylinders were delivered to consumers. Online LPG bookings have seen a notable increase, reaching approximately 98% across the industry.

Natural Gas adoption is being heavily encouraged through multiple government incentives. CGD companies are being advised to prioritize PNG connections for commercial establishments like hotels and restaurants. The Ministry of Road Transport & Highways has adopted an Accelerated Approval Framework for CGD infrastructure, aiming to fast-track network expansion significantly.

Critical Boost for Commercial LPG and Industrial Use​

To meet commercial demand, total commercial LPG allocation has been increased to roughly 70% of pre-crisis levels. A significant measure for migrant welfare involved doubling the daily quantity of 5 Kg FTL cylinders available to State Governments. Through intensive awareness campaigns, more than 35,800 - 5Kg FTL cylinders were sold across 3300 awareness camps over the last eight days.

Industrially, the government has ensured adequate supply by permitting refining complexes to make available minimum quantities of C3 & C4 streams for crucial sectors, including pharmaceuticals and public distribution. Furthermore, all refineries are operating at high capacity with adequate crude inventories, ensuring sufficient stocks of petrol and diesel.

Retail Fuel Pricing and Government Safeguards Implemented​

Despite abnormal increases in crude prices due to global crises, the Government of India has implemented measures to shield consumers. Excise duty on petrol and diesel was reduced by ₹10 per litre. To ensure domestic availability, the export levy on diesel was increased to Rs. 55.50 per litre, and on ATF to Rs. 42 per litre, effective from 11.04.2026. Notably, retail prices for both petrol and diesel remain unchanged at the pump.

Seamless Maritime Operations and Citizen Welfare Updates​

Maritime safety protocols remain robust across Indian ports, with operations reported as normal and no congestion observed. The Directorate General of Shipping facilitated the safe repatriation of over 2,084 Indian seafarers so far.

In terms of public advisories, the government urges citizens to avoid panic purchasing of fuel. Instead, reliance on digital booking platforms and promoting alternate fuels like PNG and electric cooktops are strongly encouraged. Over time, the sustained efforts have seen around 8,97,000 passengers travel from the region back to India since February 28.