Government Activates Alternate Fuels and Rations Commercial LPG Supply as West Asia Conflict Disrupts Imports

With the ongoing conflict in West Asia affecting global energy flows, the Indian government has begun implementing a series of emergency measures to manage the country’s supply of Liquefied Petroleum Gas, commonly used for cooking in households and commercial establishments.

The disruption in imports has prompted authorities to activate substitute energy sources such as kerosene, fuel oil, biomass-based fuels and even coal to reduce the burden on LPG consumption in sectors like restaurants, hotels and catering services.

Officials said the move is aimed at ensuring that household consumers — particularly economically vulnerable families — continue to receive uninterrupted cooking gas supplies even as global supply chains face pressure due to the geopolitical crisis.

Commercial LPG Supply Limited

To regulate demand in the commercial sector, the government has decided that only 20 per cent of the average monthly requirement of commercial LPG will be released for business establishments.

The allocation will be coordinated with state governments to ensure the limited supply is distributed fairly and reaches legitimate users.

At the same time, authorities have introduced new booking restrictions to control panic-driven demand among household consumers.

The minimum waiting period between two LPG cylinder bookings for families living in rural and remote regions has been extended to 45 days, while urban households will continue to follow a 25-day gap between bookings.

Previously, households were allowed to book a cylinder every 21 days, but the interval was increased to 25 days soon after the conflict began to moderate demand.

Government officials noted that bookings for LPG cylinders have surged sharply in recent weeks, largely due to rumours and public anxiety about possible shortages. Citizens have therefore been urged not to engage in panic buying or unnecessary bookings.

Alternate Fuels Introduced to Ease Pressure

Speaking in the Lok Sabha, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said several alternative energy options are being deployed to reduce dependence on LPG during the crisis.

He explained that kerosene is being made available through retail outlets and the Public Distribution System, while fuel oil is being supplied to industrial and commercial establishments.

In addition, the Ministry of Environment, Forest and Climate Change has advised State Pollution Control Boards to temporarily allow hospitality businesses to use other fuels such as biomass, RDF pellets (refuse-derived fuel), kerosene, and coal for a period of one month.

This temporary relaxation will enable restaurants and hotels to switch to alternative fuels, thereby freeing more LPG cylinders for priority domestic users.

Additional Kerosene and Coal Supplies

During a press briefing, Petroleum Ministry Joint Secretary Sujata Sharma said that besides the regular quarterly allotment of one lakh kilolitres of kerosene, the government has sanctioned an additional 48,000 kilolitres for distribution among state governments.

She added that the Ministry of Coal has directed Coal India Limited and Singareni Collieries Company Limited to increase coal allocations to states so that small and medium-scale consumers can rely on coal as an alternate energy source.

Strait of Hormuz Disruption Hits LPG Imports

The disruption of shipping through the Strait of Hormuz, one of the world’s most important energy transit routes, has significantly impacted India’s LPG imports.

India depends on foreign suppliers to meet nearly 60 per cent of its LPG demand, and about 90 per cent of these imports originate from West Asia via the Strait of Hormuz. As a result, officials estimate that around 55 per cent of India’s LPG supply chain has been affected by the ongoing crisis.

Government Invokes Emergency Law

To manage the situation, the government has invoked provisions of the Essential Commodities Act, giving authorities the power to prioritise LPG distribution for household consumers over commercial and industrial users.

Refineries across the country have also been instructed to maximise LPG production. Additionally, petrochemical feedstocks such as propane and butane are being diverted from petrochemical manufacturing to LPG output in order to boost cooking gas availability.

In the commercial sector, however, hospitals and educational institutions have been categorised as high-priority consumers and will continue to receive uninterrupted LPG supplies regardless of broader demand constraints.

Domestic Supply Expanded

India currently has more than 33 crore household LPG users, making cooking gas one of the country’s most essential energy supplies.

According to Sharma, emergency measures implemented by the government have already resulted in a 28 per cent increase in domestic LPG production compared with levels before the conflict began, with the additional output being directed primarily toward household consumption.

Regulation to Prevent Hoarding

Puri told Parliament that commercial LPG supply has been regulated primarily to prevent hoarding and black-marketing rather than to penalise the hospitality sector.

He explained that commercial LPG is normally sold in a completely deregulated open market, where cylinders can be purchased over the counter without government subsidies, booking systems, digital authentication or delivery verification.

Under normal circumstances, businesses or individuals can buy unlimited cylinders directly from retailers. However, in a situation where supply is tight and public anxiety is high, such an unrestricted system could allow large-scale hoarding and resale of cylinders at inflated prices in the grey market.

“If commercial supply had been left completely unrestricted, cylinders purchased over the counter could have easily been diverted away from legitimate users,” the minister said.

Monitoring Committees Formed

To manage distribution transparently, the government has established a three-member committee consisting of executive directors from Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited.

The committee, formed on March 9, 2026, has been holding consultations with state civil supply departments and restaurant associations across the country to determine genuine demand across sectors and regions.

Based on this assessment, oil marketing companies will allocate 20 per cent of the average monthly commercial LPG requirement, in coordination with state governments, to prevent hoarding or diversion.

District-Level Monitoring

Sharma said district-level monitoring committees are also being set up to oversee LPG distribution and ensure that supplies reach intended consumers. State administrations have been instructed to take strict action against hoarding and illegal resale.

She emphasised that no LPG dealership anywhere in the country has run out of cylinders, and household supply levels remain similar to those before the conflict began.

Field officers from oil marketing companies, along with the Anti-Adulteration Cell, are actively monitoring distributors to prevent diversion of cylinders meant for domestic use.

Panic Buying Causing Demand Distortion

Puri told Parliament that field reports indicate that panic-driven consumer behaviour — rather than an actual shortage of LPG production — is causing sudden spikes in demand in certain areas.

“The surge in bookings seen in some localities reflects anxiety-driven demand distortion rather than any breakdown in production or supply,” he said.

India’s Overall Energy Supply Secure

The petroleum minister assured lawmakers that India’s overall supply of crude oil and natural gas remains stable.

He said there is no shortage of petrol, diesel, kerosene or aviation turbine fuel, and that retail outlets across the country continue to operate normally with adequate stock levels.

The government’s top priority, he said, is to ensure that over 33 crore households, particularly economically weaker families, continue to receive cooking gas without interruption.

Opposition Raises Concerns

Puri was responding to concerns raised by Rahul Gandhi, who warned that the ongoing conflict could have serious long-term consequences for India’s energy security.

Rahul Gandhi said the effects of the crisis are already beginning to be felt, pointing to restaurants shutting down, street vendors facing difficulties and growing public anxiety over cooking gas supplies.

He also argued that allowing external geopolitical pressures — particularly from the United States — to influence India’s energy purchasing decisions could weaken the country’s strategic independence.

Government Defends Crisis Management

Responding to these remarks, Puri said the government is taking all necessary steps to provide what he described as the “strongest possible relief” under the circumstances.

He emphasised that India is currently navigating one of the most severe global energy disruptions in modern history, yet fuel supplies remain stable, le and consumer prices are being kept significantly lower than what global markets would otherwise dictate.

Puri urged the nation to stand united in supporting the institutions and workers managing the energy supply system during the crisis.

Diversifying Crude Oil Sources

The minister also highlighted India’s efforts to diversify its crude oil procurement sources.

He credited the diplomatic outreach of Narendra Modi with helping secure crude oil supplies from alternative routes that exceed the volumes previously imported through the Strait of Hormuz.

According to him, around 70 per cent of India’s crude imports now come from non-Hormuz sources, compared with about 55 per cent before the conflict began.

India currently imports crude oil from around 40 countries, a significant increase from 27 suppliers in 2006–07, while domestic refineries continue operating at high utilisation levels.

Natural Gas Allocation Prioritised

Puri added that the government has also implemented a prioritised allocation system for natural gas supplies.

Domestic piped gas connections and CNG fuel for vehicles are receiving full supply without reductions, while industrial consumers will receive up to 80 per cent of their average gas allocation from the past six months.

Meanwhile, fertiliser plants will receive 7 per cent of their previous gas allocation, ensuring that agricultural production remains protected ahead of the upcoming sowing season.

Gas usage in refineries and petrochemical plants has been reduced slightly so that the saved supply can be redirected to more critical sectors.

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