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India Ensures Fuel Supply Stability Amid West Asia Crisis; LPG Allocation Raised, Raids Intensified

Nation Voice 101 Desk by Nation Voice 101 Desk
March 21, 2026
Uncertain future for restaurants as LPG shortage hits industry
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New Delhi, March 21 : Amid ongoing geopolitical tensions in West Asia and the closure of the Strait of Hormuz, the Government of India has taken extensive measures to ensure uninterrupted energy supply and prevent shortages across the country.
The government confirmed that all refineries are operating at high capacity, with sufficient crude oil and fuel stocks available. There have been no reports of petrol or diesel shortages, and citizens have been advised against panic buying.
In the natural gas sector, priority has been given to essential services, including 100% supply for domestic PNG and CNG transport, while industrial and commercial users are receiving about 80% of their usual supply. City Gas Distribution (CGD) companies have been directed to prioritise PNG connections for commercial establishments such as hotels, restaurants, and canteens, encouraging a gradual shift away from LPG.
To ease LPG concerns, the government has increased commercial LPG allocation to 50% of pre-crisis levels, with priority given to key sectors like food services, community kitchens, and migrant workers. Domestic LPG supply remains stable, with normal cylinder deliveries and reduced panic bookings.
At the same time, strict enforcement actions are underway. Over 3,500 raids have been conducted across states, leading to the seizure of around 1,400 LPG cylinders to curb hoarding and black marketing. Oil companies have also carried out inspections at more than 2,000 fuel outlets and LPG distributorships.
Additionally, the government has allocated 48,000 KL of extra kerosene and promoted alternative fuels such as coal and electric cooking to reduce pressure on LPG demand.
State governments have been directed to maintain vigilance, set up control rooms, and ensure fair distribution. So far, 32 States and Union Territories have established monitoring systems.
The government reiterated that it is fully prepared to manage the situation and urged citizens to avoid panic booking, rely on official information, and adopt energy-saving practice.

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