Fuel Supply Stable Nationwide Despite West Asia Crisis; Govt Boosts LPG, PNG and Pipeline Expansion Framework – Indian PSU
Amid evolving geopolitical tensions in West Asia and the closure of the Strait of Hormuz, the Government of India has assured that fuel supply across the country remains stable, with all retail outlets functioning normally and adequate stocks of petrol and diesel available.
During a high-level media briefing at the National Media Centre, senior officials from the Ministries of Petroleum and Natural Gas, External Affairs, and Ports, Shipping and Waterways outlined coordinated measures to ensure energy security, maritime safety, and citizen support.
Fuel Supply: No Shortage, No Panic
All refineries are operating at high capacity with sufficient crude inventories. The government clarified that reports of panic buying in certain regions were driven by rumours, urging citizens to avoid unnecessary hoarding.
Domestic LPG production from refineries has been stepped up significantly to meet household demand, while retail fuel outlets across India continue to function without disruption.
Natural Gas Push: PNG Expansion Gets Policy Boost
In a major policy move, the government has notified the Natural Gas and Petroleum Products Distribution Order, 2026, creating a time-bound and streamlined framework for nationwide pipeline expansion.
Key highlights:
- 100% supply ensured for domestic PNG and CNG transport
- ~80% supply maintained for industrial/commercial consumers
- 9,046 new PNG connections reported across 110 geographical areas in a single day
- Fast-track approvals: PESO to clear applications within 10 days
- PNGRB mandates priority PNG connections for institutions like hostels, schools, and anganwadis
States and agencies like DDA have also eased Right of Way norms, allowing 24×7 pipeline laying work in some regions.
LPG Supply: Managed Distribution Despite Constraints
While LPG supply faces global pressures, the government has ensured:
- No dry-outs at distributorships
- Normal cylinder delivery continues
- Commercial LPG allocation increased to 50% overall
So far:
- 26 States/UTs have issued allocation orders
- Over 22,268 MT of commercial LPG uplifted since March 14
Priority sectors include:
Restaurants, dhabas, hotels, community kitchens, and migrant labour supply chains.
Kerosene & Last-Mile Support
To support vulnerable sections:
- अतिरिक्त 48,000 KL kerosene allocated nationwide
- States directed to ensure district-level distribution
Indian Nationals & Maritime Update
- All Indian seafarers in the affected region are reported safe
- 635+ seafarers repatriated so far
- 4.26 lakh passengers have returned to India since February 28
Government Advisory
Authorities have urged citizens to:
- Avoid panic buying
- Use fuel and energy resources judiciously
- Rely only on official information
District Collectors and Food & Civil Supplies officials have been instructed to maintain strict vigilance against hoarding and black marketing.
Key Takeaways
- Petrol & diesel: Fully available nationwide
- LPG: Supply stable; allocation increased
- PNG: Massive expansion push under new 2026 Order
- Citizens: Advised to conserve energy and avoid rumours
