New Delhi: The government has asked commercial and industrial (C&I) consumers of LPG cylinders to switch to piped natural gas (PNG) and has directed City Gas Distribution (CGD) companies to expedite new PNG connections in major urban centres to ease supply concerns amid disruptions linked to the West Asia conflict.
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Briefing the media on Friday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said the move is aimed at conserving LPG cylinders for households and areas without PNG connectivity.
“In order to ease the supply concerns related to LPG, Government is taking up with different City Gas Distribution (CGD) entities authorised in major urban centres/cities in the country to immediately offer new PNG connections to the affected commercial and industrial consumers in these urban centres/cities,” Sharma said.
She added that authorities have also been asked to accelerate approvals for pipeline infrastructure.
“Government has also requested all concerned local bodies, highway authorities and state governments for expedited clearances to the relevant permission requests for pipeline laying from such CGD entities,” Sharma said, adding that the move “would be a progressive step and will be in the direction of achieving wider objectives.”
The ministry also advised households located near PNG infrastructure to consider shifting from LPG cylinders to piped gas in order to conserve LPG supplies. “More than 1.5 crore PNG households in India are currently being served natural gas in their homes and will continue to be served without any hindrances,” Sharma said.
According to the ministry, around 3.73 MMSCMD of gas is currently consumed across the domestic PNG segment and adequate gas supply is available across geographical areas. Sharma said data shows that around 60 lakh households have PNG connectivity available in their vicinity but are not currently using the service.
“Considering the present circumstances, such LPG consumers are advised to switch from LPG cylinders to domestic PNG for their cooking requirements,” she said.
The government has also issued a Natural Gas Control Order under the Essential Commodities Act to safeguard supplies for priority sectors. “Government has already issued a Natural Gas Control Order on 9th March 2026 under the Essential Commodities Act, wherein priority sectors have been protected for their supplies including 100% supply to PNG and CNG with no cuts,” Sharma said.
Supplies to industrial and commercial consumers are currently being regulated at 80 percent, she added.
Sharma said India’s refining sector remains well prepared despite geopolitical tensions affecting energy supply routes. “India currently has a refining capacity of around 258 MMTPA and is the fourth-largest refining hub in the world,” she said.
The country is self-sufficient in petrol and diesel production and does not require imports of these fuels to meet domestic demand. “All refineries are currently operating at high levels including some of them even above 100 percent capacity,” Sharma said, adding that refineries maintain adequate crude oil inventories and continue to receive supplies through diversified import sources and shipping routes.
The government also reassured consumers that fuel supplies remain stable across the country. “No cases of fuel dry-outs have been reported at any of the 1 lakh retail outlets by the Oil Marketing Companies,” Sharma said. “The Government advises the public not to resort to panic buying, as adequate stocks of petrol and diesel are available and supplies are being maintained regularly,” said a statement.
The ministry also warned against unsafe fuelling practices after a case in Tamil Nadu where fuel was being sold in loose containers at a retail outlet. Sales at the outlet were suspended immediately, it added.
Sharma said LPG supplies remain stable even though bookings have surged due to panic buying. “There have been no reports of dry-out situations at any of the 25,000 LPG distributorships in the country for domestic LPG supplies,” she said. Daily LPG bookings have increased from an average of 55.7 lakh to 76 lakh, while oil marketing companies continue to deliver around 50 lakh cylinders per day.
“All the consumers are requested not to resort to panic booking,” Sharma said.
Authorities have stepped up enforcement action against hoarding and illegal diversion of LPG cylinders. Examples cited by the ministry include recovery of 524 stolen cylinders in Jhansi, seizure of 32 cylinders in Hapur, 46 cylinders from hotels in Karnataka, and 38 cylinders in Chhatarpur in Madhya Pradesh.
State governments have been asked to intensify enforcement and several states have opened control rooms to monitor the supply situation.
The government has also activated contingency measures to maintain energy supplies and reduce pressure on LPG. Domestic LPG production from refineries has been increased by more than 30 percent compared with levels before the current situation, Sharma said.
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Commercial LPG cylinders have been placed at the disposal of state governments for priority distribution, while an additional allocation of 48,000 KL of kerosene has been made to states and union territories.
To further ease demand pressures, the Ministry of Coal has directed Coal India and Singareni Collieries to supply higher quantities of coal for distribution to small and medium consumers, while environmental authorities have allowed the temporary use of kerosene and coal as alternate fuels for hospitality establishments for one month.