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'No reported dry out': Centre says LPG, fuel supply stable amid demand surge
The surge in demand comes amid escalating tensions in West Asia, which has pushed global crude prices sharply higher.
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Fuel and LPG supplies remain normal across the country, with oil marketing companies supplying around 5.5 million cylinders on Saturday and petrol and diesel retail outlets operating without disruption, the government said on Sunday.
In its daily update on energy supply and fuel availability, the ministry of petroleum and natural gas said panic buying was reported in some areas due to rumours. “Certain rumours led to unusually high sales and heavy crowding at retail outlets in a few states,” the ministry said.
Although LPG supply has been affected by the prevailing geopolitical situation, there has been “no reported dry-out at LPG distributorships”, the ministry said. Online LPG bookings rose to 94% on an industry basis, compared with 84% before March 15. To prevent diversion at the distributor level, delivery authentication code (DAC)-based deliveries increased from 53% in February to 84% on Saturday.
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“Yesterday, more than 55 lakh LPG refills were delivered,” the statement said, reiterating that supply of domestic LPG cylinders remains normal. On Saturday, around 64,000 cylinders of 5-kg free-trade LPG (FTL) were sold.
“In view of the continued closure of the Strait of Hormuz, proactive measures are being undertaken to maintain uninterrupted availability of petroleum products and LPG across the country,” the ministry said in a statement.
The surge in demand comes amid escalating tensions in West Asia, which has pushed global crude prices sharply higher. Benchmark Brent crude has risen nearly 58% over the past month to $112.57 a barrel as of March 27.
The government recently reduced excise duty on petrol and diesel by ₹10 per litre to provide relief to refiners facing under-recoveries, as fuel prices are linked to international benchmarks. To ensure adequate domestic supply, the government has also imposed export levies of ₹21.5 per litre on diesel and ₹29.5 per litre on aviation turbine fuel (ATF).
The government is also encouraging a shift from LPG to natural gas. Consumers have been prioritised with 100% supply to domestic PNG and transport CNG, while supply to industrial and commercial consumers connected to the grid is at around 80% of average consumption.
“City Gas Distribution entities have been advised to prioritise PNG connections for commercial establishments such as restaurants, hotels and canteens to address concerns regarding the availability of commercial LPG. Supply to operating urea plants is steady at around 70–75% of their last six-month average consumption,” the ministry said.
Additional liquefied natural gas (LNG) cargoes and regasified LNG (R-LNG) are also being sourced to maintain the supplies, it said. “All industrial consumers including fertiliser plants have been advised to provide their additional requirement on spot basis so that the same may be arranged by the gas marketing companies,” it added.
According to the Petroleum Planning and Analysis Cell (PPAC), as of March 1, 2026, the country has a total of 1,02,075 fuel retail outlets, including 92,343 operated by three state-run oil marketing companies and 9,732 in the private sector, comprising Nayara Energy, Jio-bp, Shell, Mangalore Refinery and Petrochemicals Limited (MRPL), and others.
