Government ramps up measures to ensure fuel, LPG supplies amid Hormuz disruption

The government has stepped up measures to secure fuel and gas supplies amid the closure of the Strait of Hormuz, while urging citizens to avoid panic buying as sporadic rushes were reported at fuel stations.

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In a statement, giving an update on developments following the war in West Asia, the Oil Ministry said refineries are operating at high capacity with adequate crude inventories, and stocks of petrol and diesel remain sufficient nationwide. Retail outlets are functioning normally, even as rumours triggered temporary spikes in demand in some States.

“There were certain rumours, which led to panic buying at some retail outlets in a few States, resulting in unusually high sales and heavy crowding at retail outlets. However, it is informed that there are adequate stocks of petrol and diesel available at all petrol pumps in the country,” it said.

To boost domestic availability, the government has cut excise duty on petrol and diesel by ₹10 per litre and imposed export levies of ₹21.50 per litre on diesel and ₹29.50 per litre on aviation turbine fuel (ATF).

In the gas sector, supplies have been prioritised for households and transport, with 100% allocation to piped natural gas (PNG) and CNG, while industrial and commercial users are receiving about 80% of average consumption. Fertiliser plants are being supplied at 70-75%, with additional LNG cargoes being sourced, it said.

The Ministry said the expansion of city gas distribution networks is being accelerated by streamlining approvals and pushing a shift from LPG to piped natural gas (PNG).

More than 2,90,000 new (PNG) gas connections were added in March, while companies, including Indraprastha Gas, Mahanagar Gas, GAIL Gas and BPCL, are offering incentives for PNG adoption.

LPG supplies have been impacted by the geopolitical situation, though deliveries remain normal with no reported shortages. Daily refill deliveries exceeded 55 lakh cylinders, and measures to curb diversion have been tightened, it said.

Commercial LPG supply has been gradually restored to about 70% of pre-crisis levels, with priority given to hospitality, food services and key industries.

The government has also increased kerosene allocations to States and intensified enforcement against hoarding and black marketing, conducting about 2,900 raids and seizing around 1,000 cylinders recently.

States have been directed to step up monitoring, conduct daily briefings, counter misinformation and fast-track gas infrastructure approvals.

“The government reiterates its advice to the public not to believe rumours,” the statement said.

“Government is making all efforts to ensure the availability of petrol, diesel and LPG. Avoid panic purchases of petrol, diesel and booking of LPG.”