Current Affairs
Gas Shortage in India: How India Is Securing LPG and CNG Supply
On 12, March, 2026, the Union Minister for Petroleum and Natural Gas informed about the steps taken by the government in response to the disruption to global energy supply arising from the ongoing conflict in West Asia.
Fears of a gas shortage in India have intensified over the past two weeks as the escalating conflict in West Asia brought commercial shipping through the Strait of Hormuz to a near-standstill. For the first time in recorded history, the world’s most critical energy chokepoint through which 20% of global crude, 20% of natural gas, and 20% of LPG flows has been effectively closed to commercial vessels.
On March 12, 2026, Union Minister for Petroleum and Natural Gas addressed the Parliament to assure the nation that India has taken decisive, pre-emptive steps to shield its citizens from the worst of the global supply disruption.
Understanding the Vulnerability
Before the crisis, India’s dependence on the Hormuz route was significant. Approximately 45% of India’s crude imports and 60% of its LPG requirements transited this route. The disruption threatened India’s energy security from domestic cooking gas to CNG for vehicles to fertiliser production ahead of the Kharif sowing season.
Global energy benchmarks reflected the shock immediately. Brent crude peaked at $126 per barrel, while spot LNG prices surged over 113% threatening the affordability of gas-based power and manufacturing across Asia.
In response to these risks, India activated Operation Sankalp, under which the Indian Navy deployed warships and surveillance assets to safeguard Indian-flagged merchant vessels and energy tankers in the Persian Gulf, Gulf of Oman, and adjoining sea lanes. The mission aims to ensure the safe transit of oil and gas shipments through this volatile maritime corridor and prevent disruptions to India’s critical energy supplies.
India’s Policy Response: Key Measures to Address the Gas Shortage
Crude Oil, Petrol and Diesel
Despite the global disruption, India’s crude supply position is secure. Non-Hormuz sourcing has been rapidly scaled up to 70% of crude imports, up from 55% before the conflict. India now sources crude from 40 countries compared to just 27 in 2006-07, a structural diversification built over successive years of deliberate policy that is now paying dividends.
Refineries are operating at high and in several cases above 100% capacity. There is no shortage of petrol, diesel, kerosene, aviation turbine fuel (ATF), or fuel oil. Additional PDS Kerosene has been allocated to all states as a supplementary household fuel option.
Natural Gas Control Order
With India’s domestic gas production at approximately 90 MMSCMD and a projected shortfall of nearly 30 MMSCMD from disrupted Gulf imports, the government issued the Natural Gas Control Order on March 9, 2026, under the Essential Commodities Act, 1955.
This established a clear national priority sequence to address the gas shortage in an equitable manner:
| Sector | Allocation | Rationale |
| Domestic PNG & CNG Vehicles | 100% — No Cuts | Urban households and transport continuity |
| Fertiliser Plants | Up to 70% | Protect Kharif sowing season |
| Industrial & Manufacturing | Up to 80% | Sustain manufacturing output |
| Refineries & Petrochemicals | Managed reduction | Gas redirected to priority sectors |
LPG Supply: Production Surge and Source Diversification
The LPG sector faced the sharpest immediate challenge, with India previously importing 60% of its LPG from Gulf countries including Qatar, UAE, Saudi Arabia, and Kuwait.
The LPG Control Order issued on March 8, 2026 directed all Indian refineries to maximise LPG yields by channelling all C3 and C4 hydrocarbon streams of propane, butane, propylene, and butenes exclusively to Oil Marketing Companies (OMCs) for domestic cooking gas. The result:
- LPG production increased by 28% within just 5 days of the directive.
- New procurement cargoes secured from the United States, Norway, Canada, Algeria, and Russia reducing Gulf dependency from 99% to approximately 70% of imports.
- An early-2026 agreement with the US for 2.2 million tonnes of LPG per annum (10% of India’s annual requirement) is already adding supply resilience.
Distribution and Anti-Hoarding Measures
The government’s foremost priority amid the gas shortage fears is ensuring that the kitchens of India’s 33+ crore families especially the poor and underprivileged covered under PM Ujjwala Yojana (PMUY) face no disruption.
Key distribution and enforcement measures include:
- Delivery time remains 2.5 days from booking to receipt, unchanged from pre-crisis norms.
- Hospitals and educational institutions placed on uninterrupted priority LPG supply.
- Delivery Authentication Code (DAC) coverage has been expanded from 50% to 90%. DAC is a one-time code sent to the consumer’s registered mobile number to confirm receipt before any cylinder is logged as delivered, making diversion effectively impossible to conceal.
- A 25-day minimum booking gap was introduced in urban areas and 45 days in rural and remote areas to prevent panic-booking.
- OMC field officers and the Anti-Adulteration Cell coordinating enforcement at the distributor level.
- The Home Secretary has chaired meetings with Chief Secretaries of all states to align enforcement frameworks.
Cooperative Federalism: State-Level Coordination
A three-member committee comprising Executive Directors from Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) was constituted on 9 March 2026. Additionally, state governments have responded with full cooperation and active coordination.
On March 11, 2026, senior OMC officials met with state administrations across 22 major states from Maharashtra and Uttar Pradesh to Tamil Nadu and West Bengal. Chief Secretaries have been briefed on supply positions, priority sequences, and the enforcement framework.
District-level monitoring committees are being established. Anti-diversion raids are being conducted and cases registered in multiple states. The Home Secretary has chaired coordination meetings with all state Chief Secretaries, a demonstration of cooperative federalism responding to a national challenge in real time.
Conclusion
India is navigating the most severe global gas shortage and energy disruption in recorded history yet the ground reality tells a story of preparation and resilience. Through swift legal orders, a 28% surge in domestic LPG production, diversification of supply sources across four continents, and aggressive consumer price shielding, the government has ensured that India’s households, hospitals, and farms remain protected.
The structural strength of India’s energy security built over two decades by sourcing crude from 40 countries instead of 27 is now yielding dividends in a moment of genuine global crisis.
The longer-term lesson is clear: energy independence is a strategic imperative that must be pursued through domestic production, supply diversification, strategic reserves, and the green energy transition.
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Gas Shortage FAQs
1. What percentage of India’s LPG is imported from the Gulf region?
Ans. Approximately 60%.
2. Which country is India’s largest LPG supplier?
Ans. Qatar.
3. Which waterway closure most directly threatened India’s LPG supply?
Ans. The Strait of Hormuz
4. What law did India invoke to manage domestic gas supply during the crisis?
Ans. The Essential Commodities Act of 1955.
5. What naval operation has India activated to protect energy shipments?
Ans. Operation Sankalp.
