Last Updated:March 12, 2026, 18:30 IST

State governments have been asked to identify a list of beneficiaries so that commercial cylinders can be delivered on a priority basis, the official said.

The government will release some commercial LPG cylinders to businesses and consumers beyond the priority sectors already identified but state governments will play a central role in determining who gets them, a senior oil ministry official said.

Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said a three-member committee of executive directors from the three oil marketing companies- Indian Oil, HPCL and BPCL- had reviewed representations from commercial consumers and taken the decision to release a limited quantity of commercial cylinders.

“A major decision has been taken. It has been decided that some commercial cylinders will also be released, but here the role of the state government is going to be very important," Sharma said. State governments have been asked, through the oil marketing companies, to identify a list of beneficiaries so that commercial cylinders can be delivered on a priority basis.

“This is important because we want to avoid hoarding or black marketing," she said.

Sharma acknowledged that the situation is challenging. India imports approximately 60% of its LPG requirements and nearly 90% of those imports come through the Strait of Hormuz- the waterway that has been effectively closed to commercial shipping for the past 13 days following the military confrontation between Iran, Israel and the United States.

“We know that we import almost 60% of our LPG and most of it, almost 90%, comes from the Strait of Hormuz. So it is a difficult situation, but the government is making all efforts to ensure that the supply to domestic consumers is ensured," she said.

Hospitals and educational institutions have already been designated as priority sectors for commercial LPG supply. The newly announced mechanism extends limited access to other commercial consumers, with state governments acting as the filter to prevent misuse.

Sharma was categorical that the surge in demand at retail level reflects panic rather than any genuine supply failure. India has approximately 25,000 LPG distributors across the country and delivers around 50 lakh cylinders daily.

“On the distribution side, no drought has been collected," she said, using the ministry’s term for a supply gap.

“There is a manifold increase in bookings because of the panic," she said, urging consumers to conserve fuel during the period of global uncertainty.

To offset the disruption to Gulf imports, the government has directed refineries to maximise LPG production. Output has been increased by 28% through refinery directives, with further increases under way. The government has also diversified sourcing, securing LPG cargoes from the United States, Norway, Canada, Algeria and Russia to replace volumes previously imported from Qatar, the UAE, Saudi Arabia and Kuwait.

Oil Minister Hardeep Puri, addressing Parliament earlier, gave an assurance that India’s energy position remains secure across all products.

“India’s crude supply position is secure and volumes secured exceed what the Hormuz would have delivered," Puri told the Lok Sabha, adding that petrol, diesel, aviation turbine fuel, kerosene and fuel oil are all fully available.

News india Oil Ministry Says Some Commercial LPG Cylinders To Be Released; States To Identify Beneficiaries

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