Home / Business and Economy / LPG Crisis: India Boosts Supply by 50%
LPG Crisis: India Boosts Supply by 50%
22 Mar
Summary
- Commercial LPG supply increased to 50% of pre-crisis levels.
- Geopolitical issues in West Asia are impacting India's LPG imports.
- India is diversifying LPG sources and enforcing stricter distribution rules.
Commercial LPG supply has been enhanced to 50% of pre-crisis levels as of March 23, 2026, to address shortages linked to West Asian geopolitical disruptions. This increase follows earlier allocations and aims to stabilize supply for critical sectors.
The government is prioritizing restaurants, hotels, industrial canteens, and community feeding programs for the additional allocation. This measure is crucial as geopolitical tensions affect energy flows through the Strait of Hormuz, impacting India's significant reliance on imported LPG.
To mitigate risks, India is actively diversifying its LPG sources to include supplies from the United States and Russia. Simultaneously, stricter measures are being implemented, including over 3,500 raids to curb hoarding and diversion, alongside enhanced enforcement of end-use details for consumers.
A structural shift is also underway, with tightened eligibility norms pushing consumers towards PNG, while commercial users must register with oil marketing companies. Alongside this, alternative fuel support, including increased kerosene and coal supply, is being provided to reduce pressure on LPG demand in non-priority sectors.
