Possible LPG Gas Shortage in India? Centre Announces New Rules for Cylinder Booking

Due to the escalating conflict in West Asia, international crude oil prices have surged significantly. The impact of this rise is now being felt in India as well. On March 7, the price of LPG cylinders was increased, raising concerns about a possible shortage of cooking gas in the country.

In response to the situation, the central government has taken important steps to ensure stable supply. The Ministry of Petroleum and Natural Gas has instructed oil refineries across the country to increase LPG production. Authorities have also directed that available LPG supplies should be prioritized for domestic household use.

To prevent hoarding and black marketing, the government has also revised the LPG booking rules. Earlier, consumers could book a new domestic LPG cylinder after a gap of 15 days. Now, this interval has been extended to 25 days, meaning customers must wait at least 25 days before booking another cylinder. The move aims to prevent panic booking among consumers.

Meanwhile, imported LPG will be primarily reserved for domestic households. Hospitals and educational institutions will also receive priority supply. The government has also decided to hold a meeting with representatives from hotels, restaurants, and industries to discuss LPG supply arrangements for commercial sectors.

India’s annual LPG demand is around 33 million metric tonnes. Nearly two-thirds of this demand is met through imports, and about 85–90 percent of imported LPG comes from Middle Eastern countries. Therefore, the ongoing situation in West Asia could directly impact India’s energy supply.

However, the government has clarified that there is sufficient stock of petrol and diesel in the country and there is no immediate risk of shortage. It also stated that if crude oil prices remain around $100 per barrel and do not cross $130, petrol and diesel prices are unlikely to rise significantly. Efforts are also being made to increase crude oil supply through routes outside the Strait of Hormuz.