Govt Bars LPG Refills For PNG Users Amid Middle East Supply Disruptions

The Government said it amended the LPG control order on Saturday, adding the move is aimed at streamlining distribution and preventing misuse of subsidised LPG in households.

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Retail LPG prices were raised earlier this month for the first time in a year.
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The Ministry of Petroleum and Natural Gas has said that it has barred consumers with piped natural gas (PNG) connections from obtaining or refilling domestic LPG cylinders as the country faces one of its sharpest cooking-gas supply disruptions in years amid the ongoing Middle East conflict.

The Ministry said it amended the LPG control order on Saturday, adding the move is aimed at streamlining distribution and preventing misuse of subsidised LPG in households that already have access to piped fuel.

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Under the revised supply order, government oil companies are now prohibited from issuing new LPG connections or refills to any consumer already connected to PNG networks. The decision comes as LPG imports have plunged: shipments for the week beginning March 9 fell to an estimated 270,000 tonnes - the lowest since April 2023 - due to near-halted flows through the Strait of Hormuz after US and Israeli attacks on Iran.

India depends on imports for nearly 90% of its LPG needs, making the disruption particularly acute. To stabilise domestic availability, the government is sourcing additional cargoes from the US, Norway, Canada, Algeria and Russia, and is in talks with Iran to secure safe passage for India-bound tankers.

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Refiners have also been directed to maximise output, lifting domestic LPG production by 28%, according to Oil Minister Hardeep Puri.

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Retail LPG prices were raised earlier this month for the first time in a year - a 7% increase that took the cost of a 14.2 kg cylinder in Delhi to Rs 913 - as part of efforts to moderate demand.

The government's latest restrictions are intended to prioritise household consumers and conserve supplies at a time when the Middle East crisis has disrupted one of India's most critical energy lifelines.

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