According to the Ministry of Petroleum and Natural Gas, domestic production of liquefied petroleum gas (LPG) has seen a significant increase of around 25 percent. The ministry stated that this entire production boost is being allocated to household consumers. For non-domestic LPG usage, the government is prioritizing critical sectors such as hospitals and educational institutions. These comments were made during an inter-ministerial briefing focused on recent developments in West Asia, held at the National Media Centre. Participants included senior officials from multiple ministries, including Petroleum and Natural Gas, External Affairs, Ports, Shipping and Waterways, and Information and Broadcasting.

Current LPG Pricing and Support Measures

The price of a domestic LPG cylinder in Delhi has risen to Rs 913 following a recent increment of Rs 60. Beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) continue to pay Rs 613 per cylinder. To address financial challenges associated with LPG, the government has approved compensation of Rs 30,000 crore for oil marketing companies to cover LPG under-recoveries.

Impact of Global Developments on LPG Supply

India imports approximately 60 percent of its total LPG consumption, with about 90 percent of these imports transiting through the Strait of Hormuz, which has been affected by current geopolitical developments. A three-member committee of Executive Directors from Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) has been established to oversee and ensure a fair distribution of LPG supplies among commercial users such as hotels and restaurants.

Natural Gas Control Order Issued

On March 9, 2026, the government introduced a Natural Gas Control Order under the Essential Commodities Act aimed at managing gas supply and safeguarding priority sectors. Domestic supplies of piped natural gas (PNG) and compressed natural gas (CNG) for vehicles will remain unaffected, with 100 percent supply guaranteed. Industrial consumers in sectors such as tea and manufacturing connected to the gas grid will receive approximately 80 percent of their average supply over the last six months. Fertilizer plants are set to receive around 70 percent, while refineries and petrochemical units will observe a 35 percent reduction to meet the needs of higher-priority sectors.

Current Crude Oil Supply Situation

The Ministry of Petroleum and Natural Gas noted that India’s crude oil supply remains stable, with a daily consumption rate of approximately 5.5 million barrels. The country has diversified its procurement routes, resulting in secured volumes that exceed typical shipments expected through the Strait of Hormuz during this timeframe. Currently, India sources crude from around 40 different countries, leading to an increase in shipments from routes outside the Strait of Hormuz rising to 70 percent compared to 55 percent previously.

Update on Indian Nationals in the Region

A recent meeting involving the Union Home Secretary and the Chief Secretaries and Directors General of Police from various States and Union Territories emphasized the need to combat hoarding of essential commodities and to ensure consistent availability. An update from the Ministry of External Affairs indicated that two Indian nationals have died, and one is missing following attacks on merchant ships. Families have received condolences, and assistance is being provided to injured individuals through Indian missions. Currently, approximately 9,000 Indian nationals are in Iran, with continuous contact maintained between the Indian mission and local communities. Relocation efforts for students and pilgrims to safer locations outside Tehran are underway, along with support for those seeking to cross borders into Armenia and Azerbaijan for flights back to India.

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