Govt ramps up measures to ensure fuel, LPG supplies amid disruption

Update: 2026-03-29 17:39 GMT

New Delhi: The government has stepped up measures to secure fuel and gas supplies amid the closure of the Strait of Hormuz, while urging citizens to avoid panic buying as sporadic rushes were reported at fuel stations.

In a statement, giving an update on developments following the war in West Asia, the oil ministry said refineries are operating at high capacity with adequate crude inventories, and stocks of petrol and diesel remain sufficient nationwide. Retail outlets are functioning normally, even as rumours triggered temporary spikes in demand in some states.

“There were certain rumours, which led to panic buying at some retail outlets in a few states, 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,” it said.

To boost domestic availability, the government has cut excise duty on petrol and diesel by Rs 10 per litre and imposed export levies of Rs 21.50 per litre on diesel and Rs 29.50 per litre on aviation turbine fuel (ATF).

In the gas sector, supplies have been prioritised for households and transport, with 100 per cent allocation to piped natural gas (PNG) and CNG, while industrial and commercial users are receiving about 80 per cent of average consumption. Fertiliser plants are being supplied at 70-75 per cent, with additional LNG cargoes being sourced, it said.

The ministry said the expansion of city gas distribution networks is being accelerated by streamlining approvals and pushing a shift from LPG to piped natural gas (PNG).

More than 2,90,000 new (PNG) gas connections were added in March, while companies, including Indraprastha Gas, Mahanagar Gas, GAIL Gas and BPCL, are offering incentives for PNG adoption.

LPG supplies have been impacted by the geopolitical situation, though deliveries remain normal with no reported shortages. Daily refill deliveries exceeded 55 lakh cylinders, and measures to curb diversion have been tightened, it said. Commercial LPG supply has been gradually restored to about 70 per cent of pre-crisis levels, with priority given to hospitality, food services and key industries.

The government has also increased kerosene allocations to states and intensified enforcement against hoarding and black marketing, conducting about 2,900 raids and seizing around 1,000 cylinders recently.

States have been directed to step up monitoring, conduct daily briefings, counter misinformation and fast-track gas infrastructure approvals.

“The government reiterates its advice to the public not to believe rumours,” the statement said.

“Government is making all efforts to ensure the availability of petrol, diesel and LPG. Avoid panic purchases of petrol, diesel and booking of LPG.”

Meanwhile, two more Indian-flagged LPG tankers, carrying roughly a day’s supply of the country’s cooking gas, have safely navigated through the war-hit Strait of Hormuz and are expected to reach Indian shores in the next couple of days.

“Two LPG carriers, BW TYR and BW ELM, carrying a combined LPG cargo of about 94,000 tonnes, have safely transited the region and are moving towards Indian shores,” an official statement said.

While BW TYR is proceeding towards Mumbai with an expected arrival on March 31, BW ELM is en route to New Mangalore with an estimated arrival date of April 1.

Previously, four Indian-flagged LPG tankers had safely sailed through the strait. Pine Gas and Jag Vasant, carrying 92,612 tonnes of LPG, reached Indian ports between March 26 and March 28.

Prior to that, MT Shivalik and MT Nanda Devi, carrying about 92,712 tonnes of LPG, had reached Mundra port in Gujarat on March 16 and Kandla port in the state on March 17, respectively.

For a country that relies on imports from Gulf nations to meet as much as 60 per cent of its cooking gas needs, the arrivals will help ease the worst LPG shortage it is battling in decades. India consumed 33.15 million tonnes of LPG last year, with imports accounting for about 60 per cent of demand. As much as 90 per cent of those imports came from West Asia.

With the strait all but shut, it is sourcing LPG from nations like the US and Argentina.

“A total of 18 Indian-flagged vessels with 485 Indian seafarers remain in the western Persian Gulf region,” the statement said.

Originally, there were 28 Indian-flagged vessels in the Strait of Hormuz when the war in West Asia broke out. Of these, 24 were on the West side of the strait and four on the East side. In the last few days, six vessels from the west side and two from the east have managed to sail to safety.

Besides the six LPG tankers, the Indian-flagged oil tanker Jag Laadki, with 80,886 tonnes of crude oil from the UAE, reached Mundra on March 18.

Another tanker, Jag Prakash, carrying gasoline from Oman to Africa, had previously safely crossed the strait and is en route to Tanzania.

LPG carriers Jag Vikram, Green Asha and Green Sanvi are still in the western Strait of Hormuz. One empty vessel is being filled with LPG.

The DG Shipping control room is operating round-the-clock and has handled 4,523 calls and 8,985 emails since activation, including 92 calls and 120 emails in the past 24 hours, the statement said, adding that safe repatriation of more than 942 Indian seafarers so far, including four in the last day, has been facilitated.

Port operations across India remain normal, with no congestion reported, the statement said, adding that maritime boards across coastal states have confirmed smooth functioning.

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