West Asia crisis: India ramps up fuel supply as 17.25 lakh LPG cylinders sold, auto LPG up 70%

India has moved to ring-fence its energy and supply chains as tensions around Iran and the Strait of Hormuz ripple through global markets, with the Centre outlining a detailed preparedness plan to keep fuel flowing and prices stable. Official data shows more than 17.25 lakh 5 kg free trade LPG cylinders have been sold since March 23, auto LPG sales by PSU oil firms have surged 70 per cent, and 22 States and Union Territories are receiving additional commercial LPG linked to PNG expansion—signalling a coordinated push to avoid shortages while discouraging panic buying.

Fuel supply intact despite Iran-linked tensions

The Ministry of Petroleum and Natural Gas said India continues to maintain uninterrupted supplies of petrol, diesel and cooking gas, even as crude markets remain volatile due to developments involving Iran and key shipping routes.

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Authorities stressed that there is no shortage of fuel, with 100 per cent supply being maintained for domestic LPG, piped natural gas (PNG) and CNG used in transport. Refineries are operating at high capacity and stock levels remain adequate across the country.

Consumers have been advised not to indulge in panic buying and to rely only on official updates, as the government continues to closely monitor the situation.

17.25 lakh small LPG cylinders sold to boost access

One of the biggest interventions has been the rapid expansion of 5 kg free trade LPG (FTL) cylinders aimed at migrant workers and low-income users.

Since March 23, more than 17.25 lakh such cylinders have been sold, supported by thousands of awareness camps across states. Daily supply for migrant labour has also been doubled compared to early March levels.

The move is designed to ensure last-mile access and reduce pressure on standard domestic LPG cylinders, especially in urban clusters.

Auto LPG demand surges 70% as users shift

A sharp behavioural shift is visible in transport fuel consumption. Sales of auto LPG by PSU oil marketing companies have risen by 70 per cent, with strong demand emerging in Karnataka, Tamil Nadu, Telangana, Rajasthan and West Bengal.

Average daily sales in April have climbed to around 301 metric tonnes, compared to 177 metric tonnes in February—highlighting a shift from private suppliers to PSU networks amid supply assurances.

This trend is also part of a broader push to promote alternative fuels and reduce dependence on conventional petrol and diesel.

22 States get extra LPG under PNG reform push

To stabilise commercial fuel demand, the Centre has linked additional LPG allocation to the expansion of PNG infrastructure.

As a result, 22 States and Union Territories are now receiving extra commercial LPG supplies, provided they accelerate PNG adoption among households and businesses.

Since March, more than 4.76 lakh PNG connections have been activated, while over 5.33 lakh new consumers have registered. Around 37,500 users have already surrendered LPG connections after switching to PNG.

The policy aims to create a long-term shift towards cleaner and more reliable fuel systems.

Strict monitoring to curb hoarding and black marketing

Enforcement has been stepped up nationwide to prevent artificial shortages. On April 17 alone, authorities conducted over 2,500 raids, seizing more than 750 cylinders.

Oil marketing companies have also tightened compliance, penalising 263 LPG distributors and suspending 67 agencies for irregularities.

States have activated control rooms and district-level monitoring committees, while daily inspections and surprise checks are underway to keep supply chains transparent.

Ports, shipping remain stable; no congestion reported

Despite global uncertainty, India’s maritime operations remain steady. Port activity across the country is normal, with no congestion reported.

Shipping authorities confirmed that Indian seafarers in the region are safe, and no incidents involving Indian-flagged vessels have been reported recently.

A dedicated control room has handled thousands of calls, while over 2,487 Indian seafarers have been repatriated so far.

India evacuates nationals from Iran region

Amid the evolving situation, the government has also focused on the safety of Indian citizens abroad.

The Indian mission has facilitated the movement of 2,373 Indians from Iran to Armenia and Azerbaijan for onward travel to India. This includes more than 1,000 students and hundreds of fishermen.

Flights continue to operate from several West Asian countries where airspace remains open, ensuring evacuation and travel support.

Price relief measures to protect consumers

To shield consumers from rising global crude prices, the Centre has cut excise duty on petrol and diesel by Rs 10 per litre.

Retail prices at PSU outlets remain unchanged, while export duties on diesel and aviation turbine fuel have been increased to prioritise domestic availability.