India Assures Secure Crude Oil Supply as LPG Distribution Prioritised

The Government of India has said crude oil supplies remain secure despite global disruptions and urged citizens not to panic over cooking gas availability, as authorities prioritise liquefied petroleum gas (LPG) distribution for households and essential services.

Indian officials have reassured consumers that the country’s energy supplies remain stable while steps are being taken to manage LPG distribution fairly during ongoing geopolitical disruptions affecting international energy transport routes.

Sujata Sharma, Joint Secretary for Marketing and Oil Refineries at the Ministry of Petroleum and Natural Gas, said authorities were directing available LPG supplies primarily to households while ensuring that essential sectors continue to receive adequate fuel.

“Currently, LPG is being directed to the domestic sector. For non-domestic LPG, priority is being given to essential sectors such as hospitals and educational institutions,” she said during a government briefing.

According to Sharma, officials are working with state governments and industry organisations to finalise a distribution plan designed to ensure that available supplies are allocated in a transparent and equitable manner.

Authorities also sought to calm concerns among consumers, warning that panic bookings and hoarding were largely being driven by misinformation circulating online and through informal networks.

Officials said the typical delivery time for domestic LPG cylinders remains around two and a half days and urged households to avoid unnecessary bookings.

Increasing domestic production

Government representatives said domestic production of LPG has been increased by roughly 25% after refineries were instructed to boost output.

Major state-run energy companies, including Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL), have been asked to expand refining capacity to meet the rise in demand.

A joint monitoring committee made up of senior executives from these companies is overseeing supply management and coordinating distribution across different regions.

Officials also said that new shipments of liquefied natural gas (LNG) had been secured from alternative suppliers to strengthen energy availability. Two LNG cargoes are currently en route to India and are expected to arrive shortly.

Dependence on imports

India imports a large share of its LPG consumption. Government data indicates that about 60% of the country’s LPG supply is sourced from overseas markets, and a significant proportion of those shipments typically pass through the Strait of Hormuz in the Middle East.

The strategic waterway is one of the world’s most important oil and gas transport routes, linking producers in the Persian Gulf to global markets.

Recent geopolitical tensions affecting shipping routes in the region have raised concerns about potential disruptions to energy supplies.

However, government officials said alternative transport routes and additional procurement efforts have helped secure supplies that exceed the volumes previously affected by the disruptions.

Rationing to manage supply

State-owned Bharat Petroleum confirmed that LPG distribution is currently being managed carefully to ensure that available stocks reach as many consumers as possible.

In a statement, the company said the present geopolitical situation and temporary restrictions affecting imports had required authorities to ration available LPG supplies.

The company said domestic households remain the highest priority for deliveries, while requests from other users are being assessed by a joint committee representing BPCL, IOC and HPCL.

The committee evaluates requests based on their importance, ensuring that sectors such as healthcare and education continue to receive the fuel needed for essential operations.

“We would like to assure all citizens that the Government is making all efforts to ensure the free passage of LPG imports with hopes that normal supply conditions will resume soon,” the company said.

Current prices and supply measures

In the national capital Delhi, a domestic LPG cylinder currently costs about ₹913. Officials acknowledged that some cases of panic booking had been reported but said the overall supply system remained stable.

To help regulate distribution, authorities have introduced a delivery code system for cylinders and are coordinating closely with distributors and refineries to maintain supply chains.

Officials stressed that the current measures are precautionary and aimed at preventing supply bottlenecks while global energy flows remain uncertain.

Context

India is one of the world’s largest consumers of LPG, widely used for cooking fuel by millions of households. Government programmes over the past decade have expanded LPG access across rural and urban areas, making stable supply a key priority for policymakers.

Because the country depends heavily on imported LPG and crude oil, geopolitical tensions affecting shipping routes in the Middle East can have immediate implications for domestic energy availability.

Officials say the current strategy—boosting domestic production, diversifying import sources and prioritising household distribution—is intended to ensure that essential energy supplies remain stable until international transport routes return to normal conditions.