Home India Ministry of Petroleum and Natural Gas Updates on Key Sectors in View of Developments in West Asia...
Date: 2026-04-04 Category: Press Release State: Union Government Country: India

Updates on Key Sectors in View of Developments in West Asia

Issued by Ministry of Petroleum and Natural Gas · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This report details the Government of India’s strategic measures to ensure energy security and the safety of Indian nationals following geopolitical developments in West Asia and the closure of the Strait of Hormuz. Key updates include the stabilization of fuel supplies, the expansion of Piped Natural Gas (PNG) connections, and the repatriation of seafarers. Significant actions include a gas supply increase to fertilizer plants effective April 6, 2026, and the extension of the National PNG Drive 2.0 to June 30, 2026. **Key Points / Main Content** **Energy Supply and Fuel Management** * **LPG Accessibility:** 5 kg Free Trade LPG (FTL) cylinders are now available at distributors with only a valid ID; no address proof is required. * **Supply Rationalization:** Booking intervals for LPG have been increased to 25 days in urban areas and 45 days in rural areas to manage demand. * **Refinery Operations:** All refineries are operating at high capacity with domestic LPG production increased to support consumption. * **Alternative Fuels:** To ease pressure on LPG, the government is promoting kerosene and coal, with an additional 48,000 KL of kerosene allocated to States/UTs. **Natural Gas and PNG Expansion** * **Prioritized Supply:** 100% supply is maintained for domestic PNG (D-PNG) and CNG-Transport; industrial and commercial grid consumers receive 80% of average consumption. * **Fertilizer Sector:** Gas supply to urea plants will increase to approximately 90% of their six-month average consumption starting April 6, 2026. * **Infrastructure Growth:** More than 3.5 lakh PNG connections have been gasified since March 2026; the "Accelerated Approval Framework" has been adopted to expedite CGD infrastructure. * **Institutional Connections:** CGD entities are directed to connect residential schools, hostels, and community kitchens to PNG within five days where infrastructure exists. **Pricing and Regulatory Measures** * **Duty Reductions:** The government reduced excise duties on petrol and diesel by Rs. 10/litre to shield consumers from rising crude prices. * **Export Levies:** An export levy of Rs. 21.5/litre on diesel and Rs. 29.5/litre on Aviation Turbine Fuel (ATF) has been imposed to ensure domestic availability. * **Enforcement:** Over 3,700 raids were conducted in a single day to stop LPG hoarding; 27 distributorships have been suspended to date. **Maritime Safety and International Support** * **Vessel Monitoring:** The vessel *Green Sanvi* safely transited the Strait of Hormuz with 46,650 MT of LPG; 17 other Indian-flagged vessels remain under active monitoring. * **Repatriation:** Over 1,320 Indian seafarers have been repatriated, with 190 returning in a 24-hour window. * **National Safety:** 24x7 helplines are active across Indian Missions in West Asia to provide consular services, visa facilitation, and logistical support amid airspace restrictions. **Impact Analysis** **General Citizens** **Impact** Affected by potential fuel shortages and price volatility due to the West Asia crisis; benefited by reduced excise duties and easier access to 5 kg cylinders. **Action Required** Avoid panic buying of petrol/diesel, use digital modes for LPG booking, and adopt energy conservation measures and alternate fuels (induction, electric cooktops). **State and UT Governments** **Impact** Responsible for monitoring supply situations and preventing illegal market activities under the Essential Commodities Act. **Action Required** Institutionalize daily press briefings to counter misinformation, setup dedicated control rooms, and expedite RoW/RoU permissions for gas pipeline expansion. **Industrial and Fertilizer Plants** **Impact** Subject to supply caps based on six-month averages but seeing a scheduled increase in gas availability. **Action Required** Arrange additional requirements on a spot basis through gas marketing companies. **Indian Seafarers and Nationals in West Asia** **Impact** Face security risks and travel disruptions due to airspace closures in countries like Kuwait and Bahrain. **Action Required** Stay in contact with Indian Missions, utilize 24x7 helplines, and follow facilitated travel routes via neighboring countries (e.g., Armenia, Azerbaijan, or Saudi Arabia). **LPG Distributors and CGD Entities** **Impact** Under strict surveillance to prevent hoarding and diversion; mandated to meet aggressive expansion targets for PNG. **Action Required** Implement Delivery Authentication Code (DAC) based deliveries and fast-track D-PNG connections for residential and commercial establishments.

Key Entities Referenced

Ministry of Petroleum and Natural Gas: The primary ministry responsible for ensuring the uninterrupted availability of petroleum products and LPG, and coordinating energy supply measures. Essential Commodities Act, 1955: The legal framework empowering authorities to take action against hoarding and black marketing, and under which new fuel distribution orders are notified. Natural Gas and Petroleum Products Distribution Order, 2026: A notified order providing a streamlined framework for the expansion of pipeline infrastructure to enhance India's gas-based economy and energy security. National PNG Drive 2.0: A government initiative aimed at accelerating the transition from LPG to Piped Natural Gas (PNG) connections across residential and commercial sectors. Petroleum and Natural Gas Regulatory Board (PNGRB): The regulatory authority directing city gas distribution entities to expedite connections and infrastructure development.
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Ministry of Petroleum & Natural Gas Updates on Key Sectors in View of Developments in West Asia 5 kg FTL cylinders available at LPG distributors on valid ID, no address proof required Over 71,000 5 Kg FTL Cylinders Sold Yesterday; 5.7 Lakh Distributed Since 23 March More than 3.5 Lakh PNG connections gasified since March 2026 Gas supply to fertilizer plants to increase to about 90% of six-month average consumption from 6 April Crackdown continues on LPG hoarding and black marketing across States/UTs; over 3700 raids conducted yesterday Vessel Green Sanvi crosses Strait of Hormuz carrying 46,650 MT LPG cargo Repatriation of over 1,320 Indian seafarers facilitated so far Indian Missions operate 24x7 helplines, extend assistance to nationals across region Posted On: 04 APR 2026 3:06PM by PIB Delhi The Government of India continues to take necessary steps to ensure preparedness and smooth functioning across key sectors. Against the backdrop of the evolving situation in West Asia, the following update provides details of the measures being taken in the areas of energy supply, maritime operations, and support to Indian nationals in the region: Energy Supply and Fuel Availability The Ministry of Petroleum and Natural Gas is taking proactive steps to ensure uninterrupted availability of petroleum products and LPG across the country, in the context of the ongoing closure of the Strait of Hormuz. As per Ministry:Public Advisory and Citizen Awareness · Govt. is making all efforts to ensure availability of Petrol, Diesel and LPG, and citizens are advised to avoid panic purchase of Petrol and Diesel as well as unnecessary booking of LPG. · Citizens are advised to beware of rumours and rely only on official sources for correct information. · For LPG, citizens are requested to use digital modes for booking of LPG cylinders and avoid visiting LPG distributors unless necessary. · Citizens are encouraged to use alternate fuels such as PNG, induction and electric cooktops wherever feasible. · In the current situation, all citizens are requested to make necessary efforts to conserve energy in their daily usage. Government Preparedness and Supply Management Measures · 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 Collieries 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. · Recently, Secretary (MoPNG) chaired a meeting with Additional Chief Secretaries and Principal Secretaries (Food & Civil Supplies) of all States and UTs to review the fuel supply situation and highlighted measures taken to ensure adequate availability. States were directed to prioritize LPG distribution, especially for domestic and essential needs, while maintaining strict vigilance against hoarding, diversion, and misinformation. On reports concerning FTL LPG supplies to migrant workers, States clarified that there is no disruption in LPG supply affecting migrants and that supplies remain stable. Secretary informed that states may consider managing targeted distribution of 5 kg FTL LPG cylinders, based on local requirements along with OMCs. Coordinated efforts with States/UTs and Institutional Mechanisms · 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 –Ø To institutionalize daily press briefings at State/District level and issue regular public advisories. Ø To setup dedicated control rooms/helplines Ø To actively monitor and counter fake news / misinformation on social media. Ø To intensify daily enforcement drives by District admin and to continue raids and inspections in coordination with OMCs Ø To issue Commercial LPG allocation orders within their States/UTs Ø To issue SKO allocation orders for additional SKO allotted to the States/UTs. Ø To fast track CGD expansion incl. expediting RoW/RoU permissions, 24x7 work permissions etc. Ø To promote PNG adoptions and alternate fuels. Ø To nominate senior nodal officers for coordination with MoPNG · Govt. of India vide letter dated 27.03.2026 and 02.04.2026 have requested Chief Secretaries of all States/UTs to intensify proactive & regular public communication, conduct daily press briefs at appropriate senior level along with timely dissemination of accurate information through social and electronic media to effectively counter misinformation and to reassure citizens regarding adequate availability and smooth distribution of LPG. · Currently, 21 States/UTs are issuing/carrying out press briefs. Enforcement and Monitoring Actions · Raids continue to be carried out in many of the States/UTs to check the hoardings and black marketing of LPG. More than 3700 raids have been conducted yesterday. · PSU OMCs officials have been directed to strengthen the system of surprise inspection to deter any instance of hoardings/black marketing. · PSU OMCs have issued 1000 show cause notices to LPG distributorships till date. Further, 27 LPG distributorships have been suspended till date. LPG Supply Domestic LPG Supply Status: · Supply of LPG is affected due to prevailing geopolitical situation. Despite this, there is no reported dry-out at LPG distributorships. · Online LPG cylinder bookings have increased to 95% on industry basis yesterday. · To prevent diversion at the distributor level, Delivery Authentication Code (DAC) based deliveries have been increased from 53% (Feb-2026) to 89% yesterday. · Around 51 Lakh Domestic LPG Cylinders were delivered yesterday. Commercial LPG Supply and Allocation Measures: · Govt. of India vide order dated 01.04.2026 has permitted Refining companies including Petrochemical Complexes in India to make available certain minimum quantities of C3 & C4 streams for critical sectors like Department of Pharmaceuticals, Department of Food & Public Distribution, Department of Chemicals & Petro Chemicals etc. based on specific quantity and refinery source as determined by the Centre for High Technology (CHT).· Govt. of India has decided to allocate total commercial allocation to 70% of the pre-crises level incl. 10% reform based. · Yesterday, more than 71,000 – 5Kg FTL cylinders have been sold. · Since 23rd March 2026, about 5.7 Lakh – 5 Kg FTL cylinders have been sold. · The 5 Kg FTL cylinders are available at nearby LPG Distributorships and can be purchased by showing any valid ID proofs. No address proof is required. · A three-member committee of Executive Directors of IOCL, HPCL and BPCL, in consultation with State authorities and industry bodies finalises the plan for the sale of Commercial LPG in the States/UTs. · A total of 72047 MT of Commercial LPG has been sold since 14th March 2026. Natural Gas Supply and PNG Expansion Initiatives · Consumers have been prioritised with 100% supplies to D-PNG and CNG-Transport. · Supplies to industrial & commercial consumers connected on grid is at 80% of their average consumption. · Supply to operating Urea plants is now steady at around 70-75% of their last 06-month average consumption. Considering the available inventory and scheduled LNG cargo arrivals, overall gas supply available to fertilizer plants will be increased to approximately 90% of their average consumption over the preceding six months, effective 06.04.2026. Additionally, gas supply to other industrial and commercial sectors, including supplies through CGD networks, will be enhanced by a further 10%, effective 06.04.2026. · 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. · CGD entities have also been advised by Govt. of India to prioritize PNG connections for commercial establishments such as restaurants, hotels and canteens across all their Gas, to address concerns regarding the availability of commercial LPG. · CGD Companies like IGL, MGL, GAIL Gas and BPCL have offered incentives for taking domestic and Commercial PNG connections. · Govt. of India has requested Govt. of States/UTs and Central Ministries to expedite approval of applications required for expansion of CGD network. · Govt. of India vide letter dated 18.03.2026 has offered all States/UTs additional 10% allocation of commercial LPG to states provided they can help in long term transition from LPG to PNG. 12 States are getting additional Commercial LPG allocation under reform measures of PNG expansion. In addition to this, 1 UT’s application has been received and is under examination. · PNGRB vide its order dated 23.03.2026 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. · Ministry of Road, Transport & Highways vide letter dated 24.03.2026 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.· Govt. of India vide Gazette dated 24.03.2026 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 vide letter 27.03.2026 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. · PNGRB has directed CGD entities to expedite D-PNG connections. Also, the National PNG Drive 2.0 (01.01.2026-31.03.2026) has now been extended till 30.06.2026 to sustain momentum in PNG expansion. · Since March 2026, more than 3.5 Lakh PNG connections have been gasified. Further, more than 3.8 Lakh customers have been registered for new connections. Crude Position and Refinery Operations · 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. Retail Fuel Availability and Pricing Measures All Retail outlets are operating normally across the country. Middle East crises has resulted into abnormal increase in the crude prices. In order to protect consumers from this impact, the Government of India has decided to absorb a part of this burden through a reduction in excise duties on petrol and diesel by Rs. 10/litre. Further, Govt. of India 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. Instances of panic buying due to rumours have been noticed in certain areas, 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. Regular retail prices for petrol and diesel are unchanged. The Government reiterates its advice not to believe rumours. In order to curb rumours, the state governments have also been requested to disseminate correct information through press briefings. Kerosene Availability and Distribution Measures Additional allocation of 48000 KL of Kerosene over and above the regular allocation has been made to all the States/UTs. Govt. of India vide Gazette notification dated 29.03.2026 has facilitated distribution of PDS SKO in PDS SKO Free States/UTs for cooking and lighting purpose only – A maximum of two PSU OMC service stations per district (preferably Company Owned Company Operated) are permitted to store up to 5,000 litres of PDS SKO. These PSU OMC service stations shall be designated by the State Government or UT administration in each district.18 States/UTs have issued SKO allocation orders. Further, Himachal Pradesh and Ladakh have communicated that there is no SKO requirement in the State/UT. Maritime Safety and Shipping Operations Necessary measures have been put in place to safeguard Indian vessels and seafarers operating in the region, by the Ministry of Ports, Shipping and Waterways. The Ministry stated that: · Ministry of Ports, Shipping and Waterways continues to closely monitor shipping movements, port operations and the safety of Indian seafarers, while ensuring continuity of maritime trade. · All Indian seafarers in the region are safe, with no incident involving Indian-flagged vessels reported in the past 24 hours. · LPG vessel Green Sanvi has safely transited the Strait of Hormuz, carrying 46,650 MT of LPG cargo with 25 seafarers on board. · A total of 17 Indian-flagged vessels, with 460 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 5,015 calls and 10,425 emails since activation; in the past 24 hours, 31 calls and 129 emails have been received. · DG Shipping has facilitated the safe repatriation of over 1,320 Indian seafarers so far, including 190 in the last 24 hours from airports and various regional locations across the Gulf. · 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 Ministry continues to coordinate with the Ministry of External Affairs, Indian Missions and maritime stakeholders to ensure seafarer welfare and uninterrupted maritime operations. Safety of Indian Nationals in the Region Across the region, Indian Missions and Posts remain in close contact with the Indian community, while continuing to provide assistance and issue necessary advisories for their safety and well-being. As informed by Ministry of External Affairs: · A group of Indian fishermen, stranded in Iran, are returning home via Armenia today; their flight is expected to reach India this evening. · Ministry of External Affairs continues to closely monitor the evolving situation in the Gulf and West Asia region, with safety, security and welfare of Indian community as highest priority. · A dedicated special control room in the Ministry remains operational; regular coordination is maintained with State Governments and UTs along with Indian Missions. · Missions and Posts are operating round-the-clock helplines, issuing regular advisories and engaging with Indian community associations, companies and local authorities. · Missions are facilitating visas, consular services, transit through neighbouring countries amid airspace restrictions, and providing logistical support where required.· Welfare of Indian students remains a priority; Missions are coordinating with local authorities, Indian schools, Boards and National Testing Agency to address concerns. · Missions remain in continuous contact with Indian crew on vessels, providing consular assistance, family communication support and facilitating return requests. · Flight operations are improving; since Feb 28, around 6,75,000 passengers have travelled from the region to India. Ø UAE: Limited non-scheduled flights continue; around 90 flights expected to India. Ø Saudi Arabia and Oman: Flights operating from multiple airports to India. Ø Qatar: With partial reopening of airspace, around 8–10 flights expected to India today. Ø Kuwait and Bahrain: Airspace remains closed; flights operated via Dammam (Saudi Arabia) by respective airlines. Ø Iran: Travel facilitated via Armenia and Azerbaijan due to airspace closure. Ø Israel: Travel facilitated via Egypt and Jordan amid restrictions. Ø Iraq: Travel facilitated via Jordan and Saudi Arabia. Ø In view of closures in Kuwait and Bahrain, travel is being facilitated via Saudi Arabia. · In an attack in Abu Dhabi, five Indian nationals were injured; four have been discharged, one remains under treatment. Mission is extending full assistance and coordinating with local authorities. ***** MN (Release ID: 2248934) Visitor Counter : 1059 Read this release in: Urdu , Marathi , ही , Assamese , Bengali , Gujarati , Odia , Tamil , Telugu , Kannada , Malayalam

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