Home India Ministry of Petroleum and Natural Gas Updates on Key Sectors in View of Developments in West Asia...
Date: 2026-04-03 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 outlines the Government of India’s coordinated response to geopolitical developments in West Asia and the closure of the Strait of Hormuz to ensure energy security and citizen safety. Key measures include stabilizing fuel supplies, repatriating over 1,130 seafarers, and managing the return of approximately 649,000 passengers since February 28. Immediate action items involve state-level monitoring of fuel hoarding, the extension of the National PNG Drive 2.0 to June 30, 2026, and the facilitation of travel for Indian nationals through neighboring countries due to airspace closures. **Key Points / Main Content** **Energy Supply and Fuel Management** * **Supply Prioritization:** Highest priority is accorded to domestic LPG, Piped Natural Gas (PNG), hospitals, and educational institutions. * **Rationalization Measures:** Booking intervals for LPG have been increased to 21–25 days in urban areas and 45 days in rural areas to manage demand. * **Pricing and Taxes:** To offset rising crude prices, excise duties on petrol and diesel were reduced by Rs. 10/litre, while export levies were imposed on diesel and Aviation Turbine Fuel (ATF). * **Inventory Status:** All refineries are operating at high capacity with adequate stocks of petrol and diesel; domestic LPG production has been increased. * **Alternative Energy:** The government is promoting the use of coal, kerosene, and electric cooktops to reduce pressure on LPG demand. **PNG Expansion and Reforms** * **Infrastructure Growth:** Since March 2026, 3.42 lakh PNG connections have been gasified, and 3.7 lakh new registrations have been recorded. * **Incentives:** CGD companies (IGL, MGL, GAIL Gas, BPCL) are offering incentives for new domestic and commercial PNG connections. * **Fast-Track Approvals:** A 3-month "Accelerated Approval Framework" has been adopted to prioritize CGD infrastructure applications. * **Directives:** Residential schools, hostels, and community kitchens are to be connected to PNG within five days where infrastructure exists. **Enforcement and Monitoring** * **Anti-Hoarding Measures:** Over 4,000 raids have been conducted, resulting in the seizure of 1,300+ cylinders and the issuance of 670+ show cause notices to distributors. * **Delivery Security:** Delivery Authentication Code (DAC) based deliveries increased to 86% to prevent distributor-level diversion. * **Public Communication:** 21 States/UTs are conducting daily press briefings to counter misinformation and panic buying. **Maritime and International Safety** * **Seafarer Safety:** 18 Indian-flagged vessels and 485 seafarers in the western Persian Gulf are being actively monitored; 1,130 seafarers have been safely repatriated. * **Port Operations:** Indian ports remain fully operational with no reported congestion. * **Support for Nationals:** 24/7 helplines and control rooms are assisting the Indian community in West Asia, including facilitating travel for 1,267 Indians from Iran via Armenia and Azerbaijan. **Impact Analysis** **Citizens / Consumers** **Impact** Affected by potential fuel supply rumors and price volatility. Benefit from excise duty cuts and prioritized domestic fuel supplies. **Action Required** Avoid panic buying of petrol/diesel, utilize digital modes for LPG booking, and rely only on official government sources for information. **State and UT Governments** **Impact** Tasked with the primary role of regulating essential commodities and preventing market malpractices under the Essential Commodities Act, 1955. **Action Required** Institutionalize daily press briefings, conduct regular raids against hoarding, set up dedicated control rooms, and expedite RoW/RoU permissions for gas pipeline expansion. **Indian Nationals and Students in West Asia** **Impact** Face travel disruptions due to airspace closures in Iran, Israel, Iraq, Kuwait, and Bahrain. **Action Required** Maintain contact with Indian Missions/Posts, follow issued advisories, and utilize facilitated transit routes through neighboring countries for repatriation or travel. **Oil Marketing Companies (OMCs) and CGD Entities** **Impact** Under increased pressure to maintain supply chains and accelerate infrastructure development. **Action Required** Strengthen surprise inspections of distributorships, fast-track PNG connections for prioritized sectors, and ensure 100% supply to D-PNG and CNG-Transport.

Key Entities Referenced

Essential Commodities Act, 1955: The primary legislative framework empowering authorities to regulate the supply of essential fuels and take enforcement action against hoarding and black marketing. Ministry of Petroleum & Natural Gas (MoPNG): The central ministry responsible for monitoring fuel availability, coordinating supply measures with states, and implementing rationalization strategies for LPG and PNG. National PNG Drive 2.0: A government initiative aimed at accelerating the expansion of Piped Natural Gas connections to provide an alternative to traditional LPG cylinders. Directorate General of Shipping (DG Shipping): The regulatory body managing maritime safety, monitoring Indian-flagged vessels, and coordinating the repatriation of seafarers from the West Asia region. Petroleum and Natural Gas Regulatory Board (PNGRB): The statutory body that regulates the natural gas sector and issues directives to expedite gas connectivity for residential, educational, and community institutions.
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Ministry of Petroleum & Natural Gas Updates on Key Sectors in View of Developments in West Asia Citizens advised to beware of rumours and avoid panic purchase of fuels Secretary (MoPNG) reviews fuel supply situation with States/ UTs, highlights measures for adequate availability States directed to prioritise LPG distribution and maintain vigilance against hoarding and misinformation 5 Kg FTL cylinder sales cross 5 lakh since 23 March; over 67,000 sold yesterday 10 States receive additional LPG under PNG expansion reforms PNG expansion gains momentum; 3.42 lakh connections gasified and 3.7 lakh new registrations since March 2026 Government continues close monitoring of maritime operations and seafarer safety; ports functioning normally Over 1130 Indian seafarers repatriated so far; 155 in last 24 hours Missions and Posts providing round-the-clock assistance to Indian Community in the gulf region Flight situation continues to improve; around 6,49,000 passengers travel to India since Feb 28 Posted On: 03 APR 2026 6:34PM by PIB DelhiIn light of the current situation in West Asia, the Government of India remains actively engaged in ensuring preparedness and continuity across key sectors through coordinated response measures. The following update outlines the steps being taken with regard to energy supply, maritime operations, and support to Indian nationals in the region: Energy Supply and Fuel Availability Necessary measures are being undertaken to ensure uninterrupted availability of petroleum products and LPG across the country, in view of the ongoing closure of the Strait of Hormuz. As per Ministry of Petroleum and Natural Gas: 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. · 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 alongwith OMCs. Coordinated efforts with States/UTs and Institutional Mechanisms· Under Essential Commodities Act, 1955 and LPG Control Order, 2000, State Governments 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 · Government 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 4000 raids have been conducted, and more than 1300 cylinders have been seized 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 more than 670 show cause notices to LPG distributorships till date. Domestic LPG Supply Status · Supply of LPG is affected due to prevailing geopolitical situation. Despite this, no reported dry- out at LPG distributorships. · Online LPG cylinder bookings have increased to 94% 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 86% yesterday. · Around 55 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. had already restored Partial Commercial LPG supply (20%) to consumers. Further, Govt. of India vide letter dated 18.03.2026 had proposed allocation of additional 10% of Commercial LPG to States/UTs based on ease of doing business reforms for PNG expansion. Govt. of India vide letter dated 21.03.2026 allowed another 20% allocation, taking the overall allocation to 50% (including 10% reform-based), with priority to restaurants, dhabas, hotels, industrial canteens, food processing/dairy units, subsidised canteens/outlets, community kitchens and 5 Kg FTL cylinders for migrant labourers. Subsequently, vide letter dated 27.03.2026, an additional 20% allocation has been provided, increasing the total to 70% of pre-crises level (including 10% reform-based), with priority to industries such as steel, automobile, textile, dye, chemicals and plastics, especially process industries requiring LPG for specialised heating not substitutable by natural gas. · Yesterday, more than 67,000 – 5Kg FTL cylinders have been sold. · Since 23rd March 2026, about 5 Lakh – 5 Kg FTL cylinders have been sold. · Most of the States/UTs have issued orders to allocate the Non-domestic LPG in line with the guidelines issued by the Govt. of India. A total of 66693 MT has been uplifted since 14th March 2026 by commercial entities in the States/UTs. 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. · City Gas Distribution (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 Geographical Areas, to address concerns regarding the availability of commercial LPG. · 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 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. 10 States are getting additional commercial LPG allocation under reform measures of PNG expansion. In addition to this, application from 1 more state 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. · More than 75,000 connections have been gasified in 110 Gas during last one week. · Since March 2026, more than 3.42 Lakh PNG connections have been gasified. Further, more than 3.7 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 remain unchanged and there is no price increase at retail outlets. There is under recovery of Rs. 24.40/Ltr on petrol and Rs. 104.99/Ltr on diesel to PSU OMCs. · 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. · 17 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 The Ministry of Ports, Shipping and Waterways has put in place necessary measures to safeguard Indian vessels and seafarers operating in the region. The Ministry stated that: · It 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, and no incident involving Indian-flagged vessels has been reported in the past 24 hours. · A total of 18 Indian-flagged vessels with 485 Indian seafarers remain in the western Persian Gulf region, and 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 24x7 and has handled 4984 calls and 10296 emails since activation; in the past 24 hours, 99 calls and 362 emails have been received. · DG Shipping has facilitated the safe repatriation of over 1130 Indian seafarers so far, including 155 in the last 24 hours from airports and various regional locations across the Gulf. · Port operations across India remain normal, with no congestion reported, and 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: On April 02, 2026, Russia’s First Deputy Prime Minister Denis Manturov, co-chair of the India- Russia Inter-Governmental Commission (IRIGC-TEC), called on Prime Minister Narendra Modi; both discussed mutually beneficial cooperation in trade, fertilizers, connectivity and people-to- people ties, and reviewed progress in implementing the outcomes of the 23rd India-Russia Annual Summit held during President Putin’s visit to India last December. On the same day, EAM held an in-depth conversation with First Deputy Prime Minister Denis Manturov on India-Russia bilateral cooperation across trade, industry, energy, fertilizers, connectivity and mobility, and exchanged views on regional and global developments, including the conflict in West Asia.The Ministry of External Affairs continues to closely monitor the evolving situation in the Gulf and West Asia region, with the safety, security and welfare of the large Indian community remaining the highest priority; a dedicated special control room is operational to support Indian nationals and their families, and regular coordination is being maintained with State Governments and Union Territories, as well as with Embassies and Consulates. Missions and Posts across the region are operating round-the-clock helplines and remain actively engaged with Indian community associations, organisations and companies; regular advisories are being issued for nationals, students, seafarers and resident Indian communities, while Missions remain in close touch with local governments and are facilitating visas, consular services, transit through neighbouring countries where airspace restrictions apply, and logistical support wherever required. Welfare of Indian students in the Gulf countries remains a high priority, with Missions coordinating closely with local authorities, Indian schools, relevant educational Boards and the National Testing Agency (for JEE and NEET) to ensure that the academic year is not impacted. Missions are in continuous contact with Indian crew members on vessels across the region to ensure their welfare, providing consular assistance, facilitating communication with families, coordinating with local authorities and assisting those seeking return to India. The overall flight situation continues to improve, with additional flights operating from the region to various destinations in India; since February 28, around 6,49,000 passengers have travelled from the region to India. UAE: Airlines continue to operate limited non-scheduled flights based on operational and safety considerations, with around 90 flights expected from the UAE to India. Saudi Arabia and Oman: Flights are operating from various airports to different destinations in India. Qatar: With partial reopening of airspace, Qatar Airways is expected to operate around 8–10 flights to India. Kuwait: Airspace remains closed; Jazeera Airways is operating non-scheduled commercial flights from Dammam (Saudi Arabia) to India, and Kuwait Airways has also announced similar operations. Bahrain: Airspace remains closed; Gulf Air is operating non-scheduled commercial flights from Dammam (Saudi Arabia) to India. Iran: In view of airspace closure, travel of Indian nationals is being facilitated through Armenia and Azerbaijan; so far, 1,267 Indians (including 860 students) have exited Iran with Mission support. Israel: Travel of Indian nationals is being facilitated via Egypt and Jordan due to airspace restrictions. Iraq: Travel of Indian nationals is being facilitated through Jordan and Saudi Arabia in view of airspace closure. In view of airspace closures in Kuwait and Bahrain, travel of Indian nationals is being facilitated via Saudi Arabia to India. ***** MN (Release ID: 2248873) Visitor Counter : 797 Read this release in: Urdu , Marathi , ही , Assamese , Bengali , Gujarati , Odia , Tamil , Kannada , Malayalam

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