**Executive Summary**
This report addresses the availability status of LPG in India following supply disruptions caused by the West Asia crisis starting February 28, 2026. It outlines government measures to boost domestic production by 40%, regulate commercial supplies, and manage domestic demand to mitigate the impact of reduced imports. Key data indicates an increase in the average refill delivery backlog to 5.7 days as of March 30, 2026, with significant policy changes effective as of March 9 and March 27, 2026.
**Key Points / Main Content**
**Supply and Production Enhancements**
* **Domestic Production Surge:** A 40% increase in domestic LPG production was achieved by utilizing all C3 and C4 hydrocarbon streams exclusively for LPG.
* **Mandatory Diversion:** As of March 9, 2026, refineries and petrochemical complexes are prohibited from diverting propane, butane, propylene, and butenes for petrochemical products; these must be supplied solely to Public Sector Oil Marketing Companies (OMCs).
* **Import Context:** Prior to the crisis, 60% of India’s LPG was imported, with 90% of those imports transiting through the Strait of Hormuz.
**Commercial Supply Regulation**
* **Tiered Allocation:** Commercial LPG supplies were initially reduced and then gradually restored to 20%, then 50%, and most recently to 70% of pre-crisis levels as of March 27, 2026.
* **Sector Prioritization:** Priority for commercial supply is given to restaurants, hotels, food processing, dairy units, and labor-intensive industries (steel, textile, chemicals).
* **Essential Exemptions:** Educational institutions and hospitals continue to receive 100% of their required supplies.
* **PNG Linkage:** 10% of the commercial allocation is linked to Piped Natural Gas (PNG) expansion reforms by State Governments.
**Domestic Demand Management**
* **Refill Intervals:** To manage stocks, the government implemented a mandatory inter-refill gap of 25 days for urban areas and 45 days for rural areas.
* **Delivery Backlog:** Due to panic booking and supply constraints, the average waiting period for refills increased from 1.2 days to 5.7 days (ranging from 0.8 to 16 days) as of late March 2026.
**Impact Analysis**
**Oil Marketing Companies (IOCL, HPCL, BPCL)**
**Impact**
OMCs are now the sole recipients of all domestic C3 and C4 hydrocarbon streams and are responsible for managing rationalized stock at bottling plants and handling increased consumer complaints.
**Action Required**
Must ensure the LPG produced is supplied exclusively to domestic consumers and prioritized commercial sectors while managing the delivery backlog.
**Refining and Petrochemical Companies**
**Impact**
Operations are restricted from producing downstream petrochemical derivatives to ensure maximum LPG output.
**Action Required**
Must comply with the March 9, 2026, directive to utilize all C3 and C4 streams for LPG production only.
**Commercial and Industrial Consumers**
**Impact**
Establishments face regulated supplies (currently at 70% of pre-crisis levels) and must navigate prioritization criteria.
**Action Required**
Labor-intensive and core industrial sectors must comply with OMC registration and apply for PNG connections where substitution is feasible to access additional allocations.
**Domestic Households**
**Impact**
Consumers face longer waiting periods for refills and strict limits on the frequency of cylinder bookings.
**Action Required**
Must adhere to the 25-day (urban) or 45-day (rural) inter-refill gaps.
**Hospitals and Educational Institutions**
**Impact**
These sectors are insulated from the crisis and continue to receive full supply requirements.
**Action Required**
No specific restrictive action required; continue standard procurement through OMCs.
Key Entities Referenced
Ministry of Petroleum and Natural Gas: The primary government body responsible for coordinating LPG supply, domestic production mandates, and emergency allocation measures.
Public Sector Oil Marketing Companies (IOCL, HPCL, BPCL): Entities directed to prioritize domestic LPG distribution and manage the exclusive utilization of C3 and C4 hydrocarbon streams for LPG production.
West Asia Crisis: The geopolitical conflict cited as the primary cause for disrupting LPG imports and triggering emergency demand management measures.
Strait of Hormuz: A critical maritime transit point for 90% of India’s imported LPG, central to the supply chain disruptions mentioned in the policy context.
PNG expansion reforms: A state-level initiative to expand Piped Natural Gas infrastructure, used as a performance-link for allocating commercial LPG quotas.
LOK SABHA
UNSTARRED QUESTION NO. 6390
TO BE ANSWERED ON 02nd April, 2026
Availability Status of LPG Supply
6390 Shri Sachithanantham R:
प(cid:282)े ो(cid:871)लयम एवं (cid:292)ाकृ(cid:467)तक गैस म(cid:287)ं ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the basis on which the Government claims that there is no shortage of LPG in the country,
in view of reports from several regions indicating disruption of services by restaurants,
college hostels and small food establishments due to non-availability of LPG cylinders along
with households long waiting periods for domestic refills;
(b) whether the Government has received complaints from consumers and commercial
establishments regarding delays in LPG cylinder supply despite confirmed bookings, if so,
the details thereof; and
(c) the details on LPG supply, demand and pending bookings during the ongoing West Asia
crisis, State/UT-wise?
ANSWER
प(cid:282)े ो(cid:871)लयम एवं (cid:292)ाकृ(cid:467)तक गैस म(cid:287)ं ालय म(cid:581) रा(cid:207)यम(cid:287)ं ी
((cid:302)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (c): Before the outbreak of conflict in the Middle East on 28 February, India imported
about 60 percent of its LPG consumption, out of which about 90 percent was transiting
through the Strait of Hormuz. The ensuing crisis has impacted supplies of imported LPG in
the country. The Government has undertaken a series of proactive measures to ensure
stability in LPG supplies post the outbreak of the conflict. These include rapid increase in
production of LPG by 40%, prioritization of domestic LPG consumption, diversification of
import sources, dynamic stock management, and inter-regional allocation to address localized
shortages.
To boost domestic production of LPG, Government, on 9th March 2026, issued directions to
all oil refining companies, including petrochemical complexes, that the entire output of C3
and C4 hydrocarbon streams—such as propane, butane, propylene and butenes—is utilised
exclusively for LPG production and supplied only to the Public Sector Oil Marketing
Companies (IOCL, HPCL and BPCL). Further, refineries were also instructed not to divert
these streams for manufacture of petrochemical products or any downstream derivatives.
OMCs have been directed to ensure that the LPG so produced is supplied exclusively to
domestic LPG consumers. As a result of these initiatives, domestic LPG production has been
increased by 40 per cent.
While domestic LPG supplies have been prioritised, commercial LPG supplies were
regulated in order to avoid hoarding & black marketing, as commercial LPG is sold over the
counter. After coordinating with State Governments & restaurant/hotel associations,
Government started supplies of 20% to commercial consumers, which was further enhanced
to an overall allocation of 50%, including 10% linked to PNG expansion reforms by StateGovernments. This allocation was prioritised for key sectors such as restaurants, dhabas,
hotels, industrial canteens, food processing and dairy units, subsidised canteens run by State
Governments or local bodies, community kitchens, and 5 kg FTL cylinders for migrant
labourers. From 14.03.2026 to 21.03.2026, approximately 15,440 MT of commercial LPG
has been uplifted across States and UTs. Additionally, educational institutions and hospitals
continue to receive 100% of supplies, accounting for around 50% of the total commercial
LPG allocation.
In continuation of these measures, the Government have further enhanced allocation of
commercial LPG by an additional 20%, taking the total allocation to 70% of the pre-crisis
level on 27 March (including the 10% reform-linked component). This additional allocation
is being prioritised for labour-intensive and core industrial sectors, including steel,
automobile, textile, dye, chemicals and plastics, with preference to process industries and
those requiring LPG for specialised heating purposes where substitution with natural gas is
not feasible.
Entities seeking allocation under this additional 20% are required to comply with existing
conditions relating to registration with OMCs and application for PNG connections to CGD
entities, as stipulated earlier. However, in cases where LPG is required for specialised process
use that cannot be substituted by natural gas, such requirements are being waived.
While prioritizing supplies, many temporary demand management measures have also been
taken in domestic LPG segment like implementation of inter-refill gap of 25 days for urban
areas and 45 days for rural areas, rationalized stock management at bottling plants, etc. As a
result of these steps and large scale panic booking by consumers, average waiting period
(backlog) for refill delivery has increased from 1.2 days (varying between 0.6 to 22 days) to
about 5.7 days (varying between 0.8 to 16 days) as of 30.03.2026.
While Government & OMCs receive complaints relating to LPG supplies, Government
remains alert to all these issues and continues to make efforts necessary to resolve them.
******