Middle East War Impact: No need to panic over LPG, says FM Nirmala Sitharaman

US-Israel-Iran War: Finance Minister Nirmala Sitharaman has urged the public not to panic over the LPG situation. Domestic cooking gas supplies will continue to be stable, she said.
Middle East War Impact: No need to panic over LPG, says FM Nirmala Sitharaman
The finance minister said that the Middle East crisis presents new challenges.

East Asia Crisis: Finance Minister Nirmala Sitharaman said on Tuesday that the domestic supply of LPG will remain stable, urging the public not to panic in anticipation of shortages. "There is no need to panic over LPG," she said. Her remarks came hours after the Narendra Modi 3.0 government held an inter-ministerial briefing detailing the potential impact of the ongoing Middle East crisis on India and its economy. That was the sixth conference of its kind this month to aprise the public on the geopolitical situation in West Asia, especially in the Strait of Hormuz -- which accounts for supplies of about one-fifth of the world's oil and gas supplies.

The finance minister also said that the country's economy continues to be strong, acknowledging that the Middle East crisis presents new challenges.

Speaking on the LPG situation, the Union minister said that refineries are increasing dometsic LPG production while all possible measures are being undertaken to ensure adequate cooking gas supplies.

She also mentioned that the government is providing subsidies to promote solar systems.

LPG supply shortage update

Inter-ministerial briefing, March 17, 2026

Here are key takeaways from the March 17 briefing, which witnessed officers from the petroleum, external affairs, communications and shipping ministries sharing updates on the implications of the Middle East crisis for India:

Petrol, diesel, LPG supply situation

  • LPG situation a cause for concern
  • Adequate crude oil stock available
  • Refineries operating at full capacity
  • No shortage of petrol and diesel
  • No reports of depot or pump dry-outs
  • Multiple offers being planned to promote shift to PNG
  • Proposal to grant deemed approvals to expand pipeline infrastructure
  • Instructions issued to appoint nodal officers and extend working hours

Enforcement action against LPG black-marketing and other illegal practices

  • LPG situation remains a concern; domestic supply is steady
  • Domestic consumers remain top priority

  • No disruption in domestic LPG cylinder supply

  • The Delivery Authentication Code (DAC) situation has improved
  • Panic-booking has declined
  • Around 89 lakh bookings on March 13, reduced to around 70 lakh recently
  • A record 62 lakh LPG cylinders delivered on March 13
  • Consumers can report underweight gas cylinders to the district panel

  • Efforts are underway to continuously increase domestic LPG production

  • Push being accelerated to expand PNG connections

  • PNGRB working on expanding the countrywide gas pipeline network

  • Domestic LPG output has increased 38 per cent

  • Consumers advised to use fuel wisely and shift to alternate fuels
  • Crude supply remains stable due to diversification, over 70 per cent flowing in from alternate sources

  • States advised to prioritise PNG to ease infrastructure expansion

  • States have created their own systems for commercial LPG allocation on priority
  • Seven states have already issued orders

No LPG connection disconnected due to absence of KYC

  • No LPG connection disconnected, no booking stopped due to lack of KYC

  • Verification mandatory for Ujjwala consumers after 8-9 cylinder bookings

  • A large share of LPG imports currently coming from the Gulf

  • The government is in discussions to source gas from alternate locations

  • Industries advised to shift to alternate fuel sources

  • Six states have created systems for kerosene distribution

Authorities enforce strict counter-black-marketing action | 12,000 raids, 15,000 cylinders seized, 2,500 inspections

  • States play a key role in curbing hoarding and black-marketing
  • As of March 16, 12,000 raids conducted, 15,000 cylinders seized, 2,500 surprise inspections conducted by oil marketing companies (OMCs)

Assistance via 24x7 control rooms

  • 164 Indian citizens brought back in the last 24 hours
  • Nanda Devi ship arrived at 2:30 AM
  • Unloading from both ships is ongoing
  • Reports of cylinders lying scattered at JNPT are misleading
  • Cylinders are properly stored
  • Perishable goods containers reduced to 600

Strait of Hormuz | Shipping update

  • All Indian ships and citizens are safe
  • The government is constantly in touch with consulates

External affairs

  • External Affairs Minister currently in Brussels
  • Bilateral meetings held with ministers from EU, Belgium, Cyprus, Slovakia and Germany
  • 650 students have reached Armenia/Azerbaijan
  • Around 50 people still remaining
  • MEA control room functioning continuously
  • Situation improving with a decline in emergency calls

West Asia Crisis | Evacuation and citizen safety

  • Safety of Indian citizens remains top priority
  • Continuous coordination with states on citizen-related issues
  • Advisories being issued regularly in coordination with local administrations
  • 2.4 lakh passengers have returned since February 28
  • 70 non-scheduled flights expected to arrive on Tuesday

Iran

  • No talks held with Iran on any exchange
  • No demand made for any vessel in return: MEA
  • Talks ongoing for safe return of 22 ships from Iran

  • Iran has not requested humanitarian assistance

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