LPG Supply Situation: Monitoring Amid Geopolitical Tensions

LPG Refill Bookings Near Pre-War Levels, Supply Concerns Persist Amid West Asia Disruptions​

New Delhi, March 19: Domestic LPG refill bookings in India are gradually returning to normal levels following a surge triggered by geopolitical tensions in West Asia. However, supply constraints continue to affect commercial consumers such as hotels, even as the government prioritises household demand.

Bookings Stabilise After Panic Spike​

Before the February 28 military strikes by the US and Israel on Iran, over 33 crore domestic LPG consumers were booking an average of around 55 lakh cylinders daily. The escalation and subsequent retaliation by Iran led to the shutdown of the Strait of Hormuz, a key energy transit route used by major Gulf exporters including Saudi Arabia, Qatar, and the UAE.

The disruption blocked nearly 60 per cent of India’s LPG imports, triggering panic buying among domestic consumers. Daily bookings surged sharply, peaking at 87.7 lakh on March 13.

Bookings have since eased to about 56 to 57 lakh as of March 18, according to Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas. She noted that panic-driven demand is subsiding as the situation stabilises.

Domestic Supply Prioritised, Commercial Users Face Shortfall​

Despite the improvement in booking trends, supply challenges remain. The government continues to prioritise domestic households, while commercial users are receiving only about 20 per cent of their usual LPG requirements.

Sharma described the overall supply situation as “worrisome” but clarified that no shortages have been reported at LPG distributor points.

Production and Deliveries See Strong Push​

Domestic LPG production has increased by more than 40 per cent over the past two weeks, helping oil marketing companies maintain supply levels. Daily LPG deliveries have largely matched pre-war levels, with some days even exceeding them.

On March 18, 54.91 lakh cylinders were delivered against bookings of over 56 lakh. During the peak panic period, companies delivered 62.5 lakh cylinders on March 13 and 60 lakh on March 14 by operating additional shifts to meet heightened demand.

Monitoring Intensifies Amid Ongoing Crisis​

Authorities are closely monitoring LPG supplies amid the continuing geopolitical tensions. Officials confirmed that deliveries to domestic consumers remain uninterrupted and no shortages have been reported at the distributor level.

Digital adoption has also increased significantly, with online bookings now accounting for 94 per cent of total requests. The Delivery Authentication Code system, which uses OTP verification to ensure correct delivery, has expanded its coverage to 83 per cent.

Push for Alternatives and Anti-Hoarding Measures​

Consumers located near city gas networks are being encouraged to shift to piped natural gas, which offers a continuous fuel supply without the need for cylinder refills. Over the past two weeks, 1.25 lakh new connections across domestic, commercial, and industrial segments have been issued.

To curb malpractices, authorities have intensified raids and inspections, leading to cylinder seizures and FIRs in multiple states. On March 18, the Union government directed states to take strict action against black marketing and hoarding.

In parallel, alternate fuels such as kerosene are being promoted, while commercial LPG stocks have been allocated to states for distribution based on priority requirements.