Lok Sabha Question No. 6429 (UNSTARRED), answered on 2026-04-02
Subject: LPG Supply Resilience amid Global Disruptions
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dr. Amar Singh

## LOK SABHA UNSTARRED QUESTION NO. 6429 TO BE ANSWERED ON 02 nd  April, 2026

## LPG Supply Resilience amid Global Disruptions

6429 Dr. Amar Singh:

## पेĚोͧलयम एवं Ĥाक ृ Ǔतक गैस मंğी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a) whether the Government has assessed the impact of global energy supply disruptions and geopolitical tensions in West Asia on LPG imports and domestic availability in the country and if so, the details thereof;

(b)  the  details  of  initiatives  undertaken  by  the  Government  to  manage  LPG  supply  chains including measures  to enhance  domestic  production  and regulate distribution  among consumer categories; and

(c)  the  initiatives  proposed  to  be  taken  by  the  Government  to  strengthen  country's  LPG supply resilience and to prevent similar shortages in future?

## ANSWER

## पेĚोͧलयम एवं Ĥाक ृ Ǔतक गैस मंğालय मɅ राÏयमंğी ( Įी सुरेश गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a)  &  (b):  India  imports  about  60  percent  of  its  LPG  consumption,  out  of  which  about  90 percent transits through the Strait of Hormuz.  In  view  of the ongoing geopolitical developments  in  West  Asia,  the  availability  of  imported  LPG  in  the  country  has  been impacted. The Government has undertaken a series of proactive measures to ensure stability in LPG supplies. These include 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 for current usage, Government, on 9th March 2026, has 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 initially impacted.  Subsequently,  Government  restored  partial  supplies  of  20%  to  commercial consumers,  which  was  further  enhanced  to  an  overall  allocation  of  50%,  including  10% linked to PNG expansion reforms. This allocation has been 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 priority, accounting for around 50% of the total commercial LPG allocation.

In continuation of these measures, Government has further enhanced allocation of commercial LPG by an additional 20%, taking the total allocation to 70% of the pre-crisis level  (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.

Oil  Marketing  Companies  (OMCs)  have  constituted  a  three-member  Committee  at  the Executive  Director  level  to  oversee  and  ensure  rationalised  and  equitable  distribution  of commercial LPG across States. States/UTs have also been advised to expedite implementation of PNG-related reforms to avail the additional 10% reform-linked allocation.

City Gas Distribution (CGD) entities have also been advised by the Government of India to prioritize the provision of Piped Natural Gas (PNG) connections to commercial establishments such as restaurants, hotels, and canteens across their authorized Geographical Areas,  with  a  view  to  addressing  concerns  relating  to  the  availability  of  commercial  LPG. Further, Government of India has requested the Governments of States/Union Territories to expedite the approval of applications required for the expansion of CGD networks.

(c): Government has undertaken several proactive measures to reduce import dependence and enhance energy security in the medium to long term. In this regard, Governmenthas requested all Central Government Ministries/Departments to carry out a comprehensive assessment of the potential demand for PNG connections in establishments under their jurisdiction, and to designate a nodal officer in each Ministry/Department to coordinate this exercise. Pursuant to the  aforesaid  directions,  the  Petroleum  and  Explosives  Safety  Organisation  (PESO)  has instructed  all  its  offices  to  accord  priority  to  CGD-related  applications  and  ensure  their disposal within 10 days of receipt.

Further,  strengthening  of  the  supply  chain  and  infrastructure  has  been  undertaken  through expansion  of  refining  capacity,  augmentation  of  LPG  import  terminals,  pipelines,  bottling plants and storage facilities  to  ensure efficient  nationwide  distribution. Government is  also promoting alternative fuels by increasing the share of natural gas in the energy mix through expansion  of  City  Gas  Distribution  (CGD)  networks  and  Piped  Natural  Gas  (PNG).  In addition,  emphasis  is  being  laid  on  renewable  energy  development,  including  solar,  wind, bioenergy  and  green  hydrogen,  alongside  implementation  of  energy  efficiency  measures across sectors. Ethanol blending and other biofuels are also being promoted to reduce import dependence and enhance energy sustainability.

Strategically, diversification of LPG imports is being pursued to ensure supply security and mitigate risks arising from regional disruptions or geopolitical events. As part of this strategy, PSU OMCs have recently concluded contracts for the import of approximately 2.2 Million Metric Ton (MMT) of US-origin LPG for the calendar year 2026, covering nearly 10% of the country's  total  LPG  import  requirement.  This  marks  a  significant  step  in  strengthening India's energy resilience by establishing a reliable alternate LPG supply source outside the traditional Arab Gulf region.

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