LPG Crisis: 'No Shortage of Petrol, Diesel, or LPG in the Country' — Government Statement Following Deepening West Asia Crisis

“We are facing a situation akin to war. Our supplies of crude oil, LPG, and LNG have been disrupted due to the ongoing conflict in West Asia. Furthermore, the prices of crude oil and other products in the international market have risen significantly.” Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, stated this during an inter-ministerial press conference. However, she expressed confidence that the Government of India has taken several crucial decisions at multiple levels to effectively manage this situation.

Supply of Crude Oil, LPG, and LNG Disrupted: Ministry of Petroleum

Sharma remarked, “The ongoing conflict in West Asia has impacted India’s supply of crude oil, LPG, and LNG. Prices of crude oil, as well as other petroleum products, have surged in the international market. Nevertheless, the Government of India has taken several significant decisions at various levels to effectively handle the situation. We possess adequate crude oil reserves and have made arrangements for supplies covering the next two months. The situation remains favorable regarding LPG and PNG as well.”

40% Increase in Domestic LPG Production

The government has reported that our refineries are operating at full capacity—or even beyond it—and that domestic LPG production has witnessed an increase of approximately 40%. According to the Ministry of Petroleum, given India’s heavy reliance on imports—with nearly 90% of LPG imports transiting through the Strait of Hormuz—the government decided to prioritize domestic consumers over commercial supplies. Initially, commercial supplies were suspended; subsequently, they were gradually reinstated. The allocation was first set at 20%, followed by an additional 10% (granted on the basis of ‘Ease of Doing Business’ for PNG expansion projects); this was later increased to 50%, and currently stands at 70%. Consequently, since approximately March 14, a total of 30,000 tonnes of commercial LPG has been supplied.

30,000 Small 5-kg Cylinders Distributed to Migrant Workers

Sujata Sharma, Secretary of the Ministry of Petroleum, stated that the government prioritized restaurants, roadside dhabas, hotels, industrial canteens, and migrant workers. The directives also specified that priority be accorded to the steel, automobile, textile, dyes, chemicals, and plastics sectors. Approximately 30,000 small 5-kg cylinders were distributed to migrant workers. The objective of this initiative is to clarify that there are adequate supplies of crude oil, petrol, and diesel available in India. The supply of LPG, LNG, and PNG remains secure. Despite rumors circulating in certain areas—which led to long queues at petrol pumps—there is no shortage of fuel. Even though the price of India’s crude oil basket rose from approximately $70 per barrel to over $100, the government ensured that there were no shortages of any petroleum products. Unlike in several neighboring countries, where fuel prices have surged, the prices of petrol and diesel in India have not been increased.