By As tensions in West Asia continue to disrupt global energy routes, Prime Minister Narendra Modi held a high-level meeting on Monday with Petroleum and Natural Gas Minister Hardeep Singh Puri and External Affairs Minister S. Jaishankar to assess the impact on India’s liquefied petroleum gas (LPG) supply and explore contingency plans to protect domestic consumers.
Government officials said the meeting focused on maintaining stable LPG availability for households as geopolitical tensions in the Middle East begin affecting global shipping lanes and fuel logistics. The discussions come at a time when the strategic Strait of Hormuz—through which a significant share of global energy supplies travel—has faced disruptions amid the ongoing conflict involving Iran, Israel, and the United States.
India depends heavily on imports to meet its LPG demand, with roughly 60 percent of its supply sourced from overseas markets. A large portion of these shipments typically passes through the Strait of Hormuz, making the route crucial for the country’s energy security. Officials familiar with the matter said the government is closely monitoring maritime traffic and assessing alternative supply routes to ensure uninterrupted fuel availability.
The country’s annual LPG consumption currently stands at around 31 million tonnes, most of which is used for domestic cooking purposes. The government’s immediate priority, according to officials, is to safeguard the supply of subsidised cylinders for households across the country. Nearly 87 percent of the LPG consumed in India is used by domestic users, while the remaining share is utilised by commercial establishments such as hotels, restaurants and small industries.
With the supply chain under pressure, authorities have begun prioritising domestic consumption over commercial demand. Industry groups representing hospitality and food service businesses have already raised concerns about limited cylinder availability in some urban centres, including Mumbai and Bengaluru.
Officials said that while the situation remains manageable, precautionary steps have been initiated to prevent supply disruptions in the coming weeks. Oil refineries have been asked to maximise LPG output by adjusting certain petrochemical production streams where feasible. In addition, state-run oil marketing companies have been directed to maintain adequate reserves and streamline distribution networks.
To discourage panic buying and hoarding, the government has also extended the minimum refill booking cycle for household cylinders from 21 days to 25 days. Authorities believe the measure will help maintain equitable distribution while demand remains elevated.
For non-domestic users, imported LPG stocks are currently being prioritised for essential services such as hospitals, educational institutions, and public facilities. Commercial users in sectors like hospitality may face tighter allocations until supply conditions stabilise.
To manage requests from industries affected by the shortage, oil marketing companies have established a review mechanism involving senior executives who will assess applications for additional supplies based on urgency and availability. Officials said the system is intended to ensure that critical services continue operating while the government balances limited resources.
State-run fuel retailer Hindustan Petroleum Corporation Limited confirmed that production and distribution adjustments are underway to offset the geopolitical disruptions affecting supply chains. The petroleum ministry has also indicated that it is exploring alternative sourcing options in the international market to diversify imports if the situation in West Asia continues to escalate.
While officials emphasise that there is no immediate nationwide shortage, the government’s rapid response highlights the strategic importance of energy planning in times of global instability. The situation remains under close watch as policymakers work to shield Indian households from the ripple effects of international conflict.
