The government has extended the LPG booking cycle to 45 days for rural consumers and activated alternate fuels such as kerosene, biomass, coal and RDF pellets for restaurants and hotels as it scrambles to ease pressure on cooking gas supplies disrupted by the West Asia conflict.
“The country has never seen such situation in past. Domestic supplies have been affected after the closure of the Strait of Hormuz,” said Sujata Sharma, Joint Secretary (Marketing), Ministry of Petroleum and Natural Gas, adding that rural consumers will now be able to book cylinders only after 45 days compared with the earlier cycle of 25 days.
LPG bookings surge amid supply fears
The measure comes as LPG demand has surged amid widespread anxiety over supplies. Officials said daily LPG bookings have jumped to around 80 lakh cylinders from the usual 60 lakh, even though actual deliveries remain around 55 lakh cylinders per day.
To reduce pressure on cooking gas channels, the government has also activated alternative fuels for commercial establishments.
“Kerosene is being made available through retail outlets and PDS channels, and fuel oil is being made available for industrial and commercial consumers,” petroleum minister Hardeep Singh Puri said in Parliament.
The Ministry of Environment, Forest and Climate Change (MoEFCC) has advised state pollution control boards to allow the temporary use of biomass, RDF pellets, kerosene and coal for the hospitality and restaurant sector for one month, enabling establishments to shift away from LPG and free up supplies for household consumers.
The Centre has also increased kerosene allocation to states by an additional 48,000 kilolitres, on top of the roughly 100,000 kilolitres released every quarter.
“Another 48,000 kilolitres of kerosene will be released to state governments, and here the role of state governments in identification of beneficiaries and distribution will be very crucial,” Sharma said.
The government has simultaneously moved to increase domestic LPG output. According to the petroleum ministry, LPG production has risen by around 28% in the past week after refineries were instructed to maximise cooking gas yields by diverting hydrocarbon streams such as propane and butane.
The LPG Control Order issued on March 8 directed refineries to channel these streams exclusively to the three state-run oil marketing companies to strengthen domestic cooking gas supply.
Officials said supplies are being regulated to prevent diversion and black marketing rather than to restrict genuine consumption.
“Had commercial supply been left entirely unrestricted, cylinders purchased over the counter could have been diverted to the grey market at the expense of genuine commercial consumers and domestic households alike,” Puri told Parliament.
“The government has therefore taken the responsible course: to regulate this channel with clear priorities and a transparent allocation mechanism.”
Govt tightens monitoring of LPG supply
Under the latest arrangement, 20% of the average monthly commercial LPG consumption will be allocated to hotels, restaurants and other commercial establishments through oil marketing companies in coordination with state governments.
The government has also expanded the Delivery Authentication Code (DAC) system, which verifies cylinder delivery through a one-time code, to 90% of consumers from around 50% earlier to curb diversion of subsidised LPG.
India’s annual LPG requirement stands at 31-32 million tonnes, of which 60-65% is imported, largely from West Asian suppliers such as Saudi Arabia, Qatar and the UAE. This dependence has left domestic supplies vulnerable to disruptions following the conflict in the Gulf region and the effective closure of the Strait of Hormuz.
According to data from the Petroleum Planning and Analysis Cell (PPAC), India produced 12.8 million tonnes of LPG in FY25, while consumption stood at 31.3 million tonnes. In the current financial year, LPG consumption had already reached 30.85 million tonnes by January, with two months still remaining in the fiscal year.
Officials said India is securing LPG cargoes from multiple sources, including the United States, Canada, Norway, Algeria and Russia, to stabilise supplies.
At the same time, the government has sought to reassure consumers that broader fuel availability remains secure. Addressing Parliament, Puri said petrol, diesel, kerosene, aviation turbine fuel and fuel oil stocks remain adequate, while disruptions in LNG imports following a Qatari force majeure have been offset by shipments from other suppliers.
“Large LNG cargoes are arriving on an almost daily basis through alternative supply routes, and India has sufficient gas production and supply arrangements to sustain this position even in the event of a prolonged conflict,” Puri said.