Government Offers Additional LPG Allocation Amid Ongoing Conflict

Amidst the ongoing conflict involving the U.S., Israel, and Iran, the Indian government has announced a strategic increase in liquefied petroleum gas (LPG) allocation. This move aims to address the current shortage by offering an additional 10% allocation to states and union territories, contingent on their cooperation in transitioning to piped natural gas (PNG). The Ministry of Petroleum and Natural Gas has outlined further allocations for various initiatives, including the establishment of control rooms and a 'dig and restore plan' for CGD entities. With sufficient stock and operational refineries, the government is encouraging consumers to shift towards PNG. Read on to discover more about the government's response to this pressing energy crisis.

By Narendra Chaudhary Mar 18, 2026, 16:51 IST

Government's Response to LPG Shortage

In light of the ongoing conflict involving the United States, Israel, and Iran, which has led to a shortage of liquefied petroleum gas (LPG) in the country, the government announced on Wednesday that it would provide an additional 10% allocation of commercial LPG to all states and union territories. This offer is contingent upon their cooperation in transitioning from LPG to piped natural gas (PNG). Sujata Sharma, Joint Secretary of the Ministry of Petroleum and Natural Gas, elaborated that an additional 1% allocation would be made for the formation of state and district-level committees to approve CGD applications and address complaints. Furthermore, a 2% allocation will be designated for issuing deemed CGD permissions.

Sharma also mentioned that a 3% additional allocation would be provided to initiate a 'dig and restore plan' for CGD entities, along with a 4% allocation aimed at reducing annual rent/lease fees. She acknowledged that the LPG situation remains concerning, although there has been an improvement in online bookings. Additionally, she noted that over 2,300 surprise inspections were conducted by OMCs as of March 17, 2026. Thirty states have established their state control rooms, and 22 states have activated district control rooms.

Several states have already begun allocating commercial cylinders. Fifteen states have distributed commercial LPG to distributors, and approximately 7,200 tons of commercial LPG (including both wholesale and auto) have been delivered across the country in the past four days. We have sufficient stock and procure crude oil from over 40 countries. Our refineries are operating at maximum capacity, and we also have an ample supply of LNG. We are urging consumers to consider transitioning from LPG to PNG.