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Govt says LPG remains concern, crude supply adequate

The government said on Wednesday that crude oil supply is adequate but LPG remains a concern, as it pushes PNG adoption and alternative fuels amid West Asia tensions.

News Arena Network - New Delhi - UPDATED: March 18, 2026, 04:05 PM - 2 min read

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People wait in a queue with empty LPG cooking gas cylinders to avail refilled ones, amid a shortage linked to the ongoing West Asia conflict affecting the global energy supply chain, in Prayagraj, on Wednesday.


India’s crude oil availability remains adequate while Liquefied Petroleum Gas (LPG) continues to be a concern amid the ongoing West Asia conflict, the government said on Wednesday.

“Our crude availability is normal, and our refineries are operating at the optimal levels,” said Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the Ministry of Petroleum and Natural Gas, during an inter-ministerial media briefing.

However, she flagged persistent challenges in LPG supply. “LPG issue is still worrisome. There is an improvement in online booking. But it is also true that there are long lines at distributors’,” Sharma said.

The government noted that domestic LPG production has increased by 40 per cent in recent days, even as demand pressures continue to strain distribution networks in several regions.

Reassuring consumers, officials said no “dry outs” have been reported at retail outlets and urged the public to avoid panic buying. Authorities maintained that supply chains remain functional despite global uncertainties.

The government also said that India has sufficient stocks of aviation turbine fuel, adding that oil marketing companies have not raised prices.

Also read: Indian vessel ‘Jag Laadki’ reaches Mundra Port

Amid rising concerns over energy security due to tensions in West Asia, the Centre has outlined measures to accelerate the adoption of Piped Natural Gas (PNG) and expand city gas infrastructure across the country.

As part of this push, consumers, particularly commercial LPG users in urban areas, are being encouraged to switch to PNG to reduce dependence on LPG supplies during the current period of volatility.

Several city gas distribution entities have introduced incentives to boost PNG adoption, aligning with the government’s strategy to diversify fuel usage and ease pressure on LPG availability.

In a communication issued earlier this week, the Centre urged states and Union Territories to expedite approvals and remove procedural bottlenecks for laying city gas distribution pipelines.

Additionally, alternate fuels such as kerosene and coal have been activated for certain sectors, including hospitality and restaurants, to mitigate the impact of LPG shortages.

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