India Increases 5-Kg LPG Supply And New PNG Connections In Wake Of West Asia Disruptions

In order to cater to the needs of the people due to the disruption of the availability of fuel as a result of disturbances in West Asia, India has increased the distribution of 5-kg LPG cylinders and new PNG connections.

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More than 13 lakh 5-kg LPG cylinders have been sold since March 23, with daily sales crossing 1 lakh units in recent weeks. This compares with average daily sales of around 77,000 units in February, before the disruption. The expansion is expected to enhance access for migrant laborers and poor families.

PNG Expansion Gathers Momentum

The PNG network has also been expanded by the government, with more than 4.24 lakh new customers since March. During the same period, more than 30,000 consumers surrendered LPG connections, indicating a shift toward piped gas, as per official data.

City gas distribution companies, including Indraprastha Gas Ltd, Mahanagar Gas Ltd and GAIL Gas Ltd, have been directed to prioritise PNG connections, particularly for commercial users.

Supply Measures And Domestic Allocation

The six-week conflict in West Asia has affected global energy supplies. India imports about 50% of its crude oil, around 40% of its natural gas and 85–90% of its LPG requirements from the region, according to government data.

To manage the situation, authorities have prioritised LPG supply for domestic households, while reducing allocations to commercial users such as hotels and restaurants. Commercial LPG availability has been restored to around 70% of pre-crisis levels through targeted measures.

Daily domestic LPG deliveries remained stable, with over 52 lakh cylinders supplied on April 11, the statement said. Online bookings account for approximately 98% of demand, while delivery authentication covers 93% of transactions.

Refining And Gas Supply Status

Refineries are operating at high utilisation levels with adequate crude inventories, while domestic LPG production has been increased to support supply. The government has also guaranteed a complete supply of natural gas for both PNG households and CNG vehicles.

Gas supply to fertiliser plants has been raised to around 95% of recent average consumption, supported by additional LNG imports.

Policy Measures To Support Availability

Oil marketing corporations owned by the government, like the Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, are collaborating with the states for efficient fuel delivery.

In order to offset the effects of rising international prices of oil, the government lowered excise duty on petrol and diesel by ₹10 per litre and raised export duties on diesel and aviation turbine fuel.

These steps were taken to ensure an uninterrupted fuel supply in all sectors amid disturbances in international fuel markets.