LPG Crisis? India Strengthens Energy Preparedness Amid West Asia Supply Disruptions

The Ministry of Petroleum and Natural Gas has outlined a set of measures to ensure steady fuel supplies in the country following disruptions in global energy trade caused by the ongoing conflict in West Asia. This was revealed by Union Minister for Petroleum and Natural Gas Hardeep Singh Puri in a briefing to the parliament. The statement was released by the Press Information Bureau on March 12, 2026.

Global Energy Disruption

The crisis stems from disruptions in the Strait of Hormuz, a narrow but critical maritime corridor through which roughly one-fifth of the world’s crude oil, natural gas, and LPG normally moves. Military tensions involving Iran, Israel, and the United States have halted commercial shipping through the Strait for nearly two weeks, sending shockwaves through global energy markets.

Crude Supply And Fuel Availability

Despite these developments, the government has said that India’s crude supply position remains comfortable. Earlier, nearly 45 per cent of India’s crude imports moved through the Strait of Hormuz. However, diversification of supply sources over the past several years has reduced dependence on the route.

According to the minister, non-Hormuz sourcing now accounts for close to 70 per cent of India’s crude imports, compared with about 55 per cent before the conflict began. India currently sources crude oil from around 40 countries, significantly more than the 27 suppliers recorded in 2006–07.

Refineries across the country are running at high utilisation levels to maintain steady fuel availability. In some cases, plants have even crossed 100 per cent utilisation. The government has emphasised that there is no shortage of petrol, diesel, aviation turbine fuel, kerosene, or fuel oil. Across the country, retail outlets remain stocked, and supply chains are operating as normal.

Natural Gas Supply Prioritisation

To manage the supply of natural gas, the government has introduced a system of priority allocation, according to which piped gas to households and compressed natural gas will continue as usual.

To manage natural gas supplies, the government has introduced a priority allocation system under the Essential Commodities Act. Under this arrangement, piped gas to households and compressed natural gas for vehicles will continue without cuts.

Industrial and manufacturing users will receive up to 80 per cent of their recent average supply, while fertiliser plants will receive up to 70 per cent to ensure the availability of agricultural inputs. Additional liquefied natural gas cargoes are being arranged through alternate routes to compensate for disruptions from Gulf suppliers.

The government has also moved quickly to stabilise cooking gas availability. Earlier, nearly 60 per cent of India’s LPG imports came from Gulf countries. Procurement has now been widened to include suppliers such as the United States, Norway, Canada, Algeria, and Russia. Refineries have been directed to maximise LPG output, which has resulted in a 28 per cent rise in production within a few days.

Officials said domestic LPG supply for more than 33 crore households remains fully protected. Authorities are also keeping a close watch on panic buying and hoarding to ensure that supplies continue to reach consumers without disruption.