India LPG ‘crisis’ highlights | PM Modi to meet CMs over West Asia war; Meghalaya flags commercial LPG crunch

The Indian government has so far said there is enough stock, while Opposition leaders claim the preparation was not enough. To read what the government said, go here.

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Rajasthan CM Bhajanlal Sharma on Thursday held an all-party meeting on LPG supply in the state, reiterating that the state had adequate cooking gas stocks. "Authorities are continuously monitoring the situation and the CM has instructed district collectors to oversee the situation closely," a government spokesperson said.

Sharma briefed the leaders and said there is no need for panic but urged everyone to remain vigilant. "It is our collective responsibility. ...strict action will be taken against illegal hoarding and black-marketing. Every citizen must cooperate in such times," the CM said, expressing gratitude to all parties for their cooperation.

Leader of opposition Tikaram Jully said that regardless of the situation, the government should also explore alternative measures to ensure stability.

Congress legislators Ramkesh Meena, Rajendra Pareek, BJP MLA Shrichandra Kriplani, RLD MLA Subhash Garg, BSP MLA Manoj Nayyangali, and independent MLA Ashok Kothari also offered suggestions during the meeting.

Social media claims continue to suggest that Prime Minister Narendra Modi hinted at a “nationwide lockdown” during his recent address to Parliament. But these have been found to be misleading.

While addressing the Lok Sabha and Rajya Sabha regarding the ongoing conflict in West Asia, the Prime Minister did not use the word “lockdown”.

Instead, he referenced the Covid-19 pandemic of 2020-21 as a historical example. "We must be prepared for every challenge," the PM said.

The speculation stemmed from public anxiety over global disruptions to oil, gas, and fertiliser shipments, alongside memories of pandemic-era restrictions.

However, officials clarified that India faces no health emergency. The current focus remains entirely on economic stability and ensuring the continuity of essential supply lines.

Meghalaya has sought a substantial increase in LPG supply from the Centre after facing reduced deliveries, particularly of commercial cylinders, affecting hotels and restaurants, a state minister said on Thursday.

Food, civil supplies and consumer affairs minister Methodius Dkhar said the state government has written to the Centre requesting a 50-60 per cent increase in LPG allocation, citing rising demand due to a surge in tourism and increased dependence on the fuel.

"In the last two days, we have received a slightly better supply of commercial cylinders, but it is still not at the level we used to get earlier," Dkhar told news agency PTI.

He said there is no acute shortage of LPG for domestic use at present, but supply of commercial cylinders remains constrained.

"If the requirement is 100 cylinders, we are currently receiving around 80," he said.

The minister added that the government has taken measures to prevent hoarding and black marketing of LPG.

Despite the global price surge, India's state-run oil companies — IOC, BPCL and HPCL — continue to keep retail petrol and diesel prices unchanged. These firms control about 90 per cent of India’s fuel retail market.

Retail fuel prices have largely remained frozen since April 2022, with these companies absorbing losses during periods of high crude prices and recovering margins when global rates soften.

However, the companies recently raised prices of premium petrol by ₹2 per litre and increased bulk diesel rates for industrial users by about ₹22 per litre. In Delhi, premium petrol now costs ₹101.89 per litre, up from ₹99.89, while bulk diesel prices have risen sharply.

Normal petrol and diesel prices, however, remain unchanged at ₹94.77 and ₹87.67 per litre, respectively, in the national capital.

Indian refiners are incurring losses estimated at over ₹50 per litre on diesel and around ₹20 per litre on petrol due to retailing fuels below market rates, Reuters reported citing an industry source.

The recent price stress stems from geopolitical tensions in the Middle East/West Asia. Crude oil prices climbed to around $119 per barrel earlier this month before easing to about $100.

India, which imports nearly 90% of its crude oil and about half of its natural gas, is particularly vulnerable to such disruptions. A significant portion of these imports passes through the Strait of Hormuz, a key global energy chokepoint.

India’s largest private fuel retailer, Nayara Energy, has raised petrol and diesel prices, even as state-owned oil marketing companies continue to hold retail rates steady after a two-rupee hike in premium petrol some days ago.

Nayara's move comes against the backdrop of a sharp surge in global crude oil prices following the recent escalation in the West Asia conflict.

Nayara increased petrol prices by ₹5 per litre and diesel by ₹3 per litre, news agency PTI reported. The hike varies across states due to local taxes such as VAT, with petrol prices increasing by as much as ₹5.30 per litre in some regions.

Private fuel retailers, unlike their state-owned counterparts, have been under mounting financial pressure.

“Private fuel retailers in India receive no government compensation to offset losses from holding back price increases, unlike state-owned firms that are supported for acting as ‘good corporate citizens’,” the news agency's source said.

Nayara, which operates nearly 7,000 petrol pumps across the country, the maximum number for any private player, has opted to partially pass on the increased input costs to customers rather than absorb the entire burden.

Another report by Reuters said that the Russia-backed private refiner has raised prices in a move aimed at offsetting mounting revenue losses from retail fuel sales, petrol pump dealers said.

Samajwadi Party president Akhilesh Yadav, one of the main leaders of the Opposition, on Thursday attacked the BJP-led NDA government at the Centre, and alleged that “changes” in LPG cylinder supply were not matched with adequate production planning.

Claiming that his family had already arranged two traditional earthen stoves at home in view of the "ongoing LPG-related difficulties", he alleged that the BJP governments at Centre and in Uttar Pradesh failed to address inflation, unemployment and key governance challenges, and instead relied on "propaganda" and "event-based politics".

Yadav told reporters that people are standing in queues "for basic needs" such as cooking gas under the BJP rule.

He said he had earlier advised people to keep alternatives ready.

"I had told you to keep cow-dung cakes, firewood and charcoal stoves ready... but you did not heed my advice. As for us, we have already procured two traditional earthen stoves for our home, because everyone is bound to face difficulties regarding cooking gas," the former CM said.

A ship carrying LPG arrived at the New Mangalore Port in Karnataka, easing some of India's LPG concerns due to the West Asia conflict, on Thursday. The tanker, Apollo Ocean, sailing under the flag of Vietnam comes after the arrival of Shivalik and MT Nanda Devi earlier this month, news agency ANI reported.

Two more Indian LPG carriers, Jag Vasant and Pine Gas, have successfully transited through the strategic Strait of Hormuz, marking a significant movement in energy transport. The carriers are likely to reach Indian ports between March 26 and 28, completing their journey from the Gulf.

The petroleum ministry on Thursday said India's energy supply is fully secure and stable; and that there is no shortage of petrol, diesel, or LPG anywhere in the country. Misinformation and panic-driven narratives are completely unfounded, it added.

While India has been assured by the Modi government that there is enough fuel stock, Poland's government has decided to cut VAT and excise tax on fuels to shield people from the impact of the war in Wes Asia.

Prime Minister Donald Tusk is scheduled to announce details at a press conference later today, an official broadcaster said.

Countries across Europe have been scrambling to mitigate the impact of the US and Israel's attack on Iran on fuel costs and regional peers like Romania and Hungary have already moved to cap prices.

Poland's finance minister Andrzej Domanski told public radio earlier on Thursday that Poland was considering cutting VAT on fuel and that a windfall tax on oil companies' profits could not be ruled out, even though Warsaw was not currently working on one. "We are not ruling out a tax on excess profits," he said.

On natural gas, the oil ministry has said India produces 92 million standard cubic meters per day of natural gas domestically out of a total daily requirement of 191, making India far less import-dependent on gas than on LPG.

And so piped natural gas (PNG) as an alternative to LPG is being considered. "The claim that PNG is being pushed because LPG is running out is misinformation. LPG supply is secure. PNG is simply a better, more affordable and highly convenient fuel for India's households," the statement said.

On LPG, there is no shortage, the Indian government said in an oil ministry statement on Thursday. Following government orders, domestic refinery production has been ramped up by 40 per cent, bringing daily LPG output to 50,000 tonnes (more than 60 per cent of India's requirement), against a total daily requirement of around 80,000 tonnes. That does not mean shortage, according to the ministry.

"The net daily import requirement has consequently come down to only 30,000 tonnes — meaning India is now producing much more than it needs to import," it said, adding over and above domestic production, 800,000 tonnes of assured inbound LPG cargoes are already secured and en route from the United States, Russia, Australia, and other countries, arriving across India's 22 LPG import terminals. That's double the 11 terminals that existed in 2014, it added, focusing on the Modi regime's time in power.

“Oil companies are successfully delivering over 50 lakh cylinders every day. Cylinder demand had gone up to 89 lakh cylinders due to panic ordering by consumers and has now come down to 50 lakh cylinders again,” it added.

Commercial cylinder allocations have been raised to 50 per cent in consultation with state governments to avoid hoarding or black marketing.

India, the world's fourth-largest refiner and fifth-largest exporter of petroleum products, has structurally assured domestic fuel availability and continues to supply refined fuels to over 150 countries, an oil ministry statement said on Thursday.

Across the world, countries are dealing with price increases, rationing, odd-even vehicle restrictions, and forced station closures. Some have declared a 'National Energy Emergency'.

"India does not feel the need for any such measures," it said, "While other nations are rationing, there is no shortage of supplies in India."

Calling panic buying "isolated instances" at "select pumps", it added that "they were driven by deliberate misinformation spread by certain videos in social media".

The ministry said despite the situation at the Strait of Hormuz, India is today receiving more crude oil from its 41-plus suppliers across the world than what was previously arriving through the strait.

Dismissing as misinformation reports suggesting that India had only six days of stocks, it said the country has 74 days of total reserve capacity and actual stock cover is around 60 days right now.

With some petrol pumps, especially in smaller towns, finding difficulty in lifting fuel after oil companies put them on cash-and-carry, the oil ministry said on Thursday that steps have been taken to increase credit to petrol pumps to over three days from earlier allowed one day.

While the Iran war has disrupted the supply of half of the crude oil (raw material used to make fuels like petrol and diesel), the country has secured enough crude supplies from elsewhere for the next 60 days.

On LPG, whose supply has been scarce because of the shutting down of Strait of Hormuz, the waterway that shipped a bulk of Indian supplies, the ministry said 8 lakh tonnes of LPG cargoes have been secured and one full month of supply is "firmly arranged".

Separately, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) put out posts to say their petrol pumps were operating normally and there was no shortage of any fuels.

India has about 60 days of oil stock cover and has arranged one full month of LPG supply, the government said on Thursday, adding that there is no shortage of petrol, diesel, or LPG. It called reports of shortages as a “deliberate misinformation campaign”.

Amid reports of panic buying and long queues at petrol pumps and LPG distributors, the ministry of petroleum and natural gas, for the first time since the war in West Asia broke out, released stock details of crude oil, fuels and LPG as it rushed to calm nerves.

In parallel, state-owned oil marketing companies also said there is no shortage and supplies remain stable.

"Every Indian refinery (which turns crude oil into fuels like petrol and diesel) is running at over 100 per cent utilisation," the government said.

"Actual stock cover is around 60 days right now (including crude stocks, products stocks and the dedicated strategic storage in caverns) even as we are on the 27th day of the Middle East crisis."

It added that crude supplies remain stable despite tensions around the Strait of Hormuz, with higher volumes from alternative sources offsetting any disruption.

The ministry said all 1 lakh-plus retail fuel outlets across the country are open and dispensing fuel without interruption. "Not a single outlet has been asked to ration supply."

In its statement, the oil ministry said all petrol pumps across the country are adequately stocked and operating normally, with no rationing of petrol or diesel.

Nayara Energy, India's largest private fuel retailer, has increased petrol prices by ₹5.3 per litre and diesel by ₹3 per litre amid global disruption to energy supplies in view of the US-Iran war that has been going on for almost a month now.

Track updates on Middle East war

As global trade routes, particularly through the Strait of Hormuz, face disruptions, the Centre has maintained that India is well-prepared to manage any economic or logistical challenges. Friday's meeting between the PM and CMs is expected to further streamline coordination between the Centre and states to effectively navigate the crisis.

Prime Minister Modi has assured that India has sufficient crude oil reserves and robust arrangements for continuous supply. He has told Parliament that the expansion of strategic petroleum reserves and diversification of energy imports from 27 to 41 countries over the past decade to reduce dependency on any single source.

On the safety front, government authorities reiterated that there is no cause for panic, with Indian embassies actively assisting citizens in affected regions. Evacuation plans remain in place, with the safety of Indians abroad as the top priority, news agency ANI reported.

The Centre held an all-party meeting chaired by defence minister Rajnath Singh on Wednesday, where the government briefed about the situation in West Asia and how India is dealing with its impact.

All Union ministers part of the Cabinet Committee on Security — Rajnath Singh, home minister Amit Shah, external affairs minister S Jaishankar and finance minister Nirmala Sitharaman — represented the government. Health minister J P Nadda and parliamentary affairs minister Kiren Rijiju were also part of the meeting.

A detailed briefing by foreign secretary Vikram Misri, along with remarks from external affairs minister S Jaishankar and petroleum minister Hardeep Singh Puri, highlighted that India's energy security “remains stable”, with “adequate availability” of crude oil, LPG, and fertilisers.

The government underscored that multiple shipments have already reached India, with more expected in the coming days, backed by the country's strong refining capacity. It also emphasised proactive diplomatic outreach, noting that New Delhi is in touch with all parties involved and ensuring uninterrupted supply lines, calling it a “diplomatic success.”

Amid concerns triggered by rumours of fuel shortages in parts of the country, Jammu and Kashmir CM Omar Abdullah urged people not to panic. Addressing reports of long queues at petrol pumps in Jammu, Abdullah said, "My earnest request is that you stop camping outside petrol pumps otherwise, I will shut all the petrol pumps for the next few days." He termed the situation "regrettable," noting that while the central government has clarified there is no shortage of petrol, diesel, or LPG, people continue to rely on misinformation circulating on social media.

He further stressed that no directive has been issued to limit fuel usage and appealed to citizens to avoid panic buying. "There is a meeting of all CMs with PM Modi tomorrow online, and I will attend that," Abdullah added, reiterating that the supply situation remains stable.

Prime Minister Narendra Modi will hold an interaction with Chief Ministers on Friday evening via video conferencing to review state-level preparedness amid the ongoing West Asia conflict.

However, sources told news agency ANI that CMs of poll-bound states will not be attending the meeting. These include Kerala's Pinarayi Vijayan, West Bengal's Mamata Banerjee, Tamil Nadu's MK Stalin, Assam's Himanta Biswa Sarma, and Puducherry's N Rangasamy.