Govt says fuel supply stable, urges public not to panic amid West Asia crisis

Ziraat Times Team Report

New Delhi, March 26: The Government of India on Thursday said retail fuel outlets across the country are operating normally and adequate stocks of petrol, diesel and LPG are available, even as it continues to monitor the evolving situation in West Asia and the closure of the Strait of Hormuz.

In an update on key sectors issued on Thursday, the government advised citizens not to believe rumours that had triggered panic buying at some retail outlets in a few states, leading to unusually high sales and crowding. Officials reiterated that sufficient fuel supplies are in place and the situation remains under control.

Refineries running at high capacity

According to the update, all refineries are currently operating at high capacity with adequate crude inventories. The country also maintains sufficient stocks of petrol and diesel, while domestic LPG production from refineries has been increased to support consumption needs.

Retail outlets across India continue to function normally, the government said, stressing that panic purchases are unnecessary.

Natural gas supply prioritised

The government said consumers are being prioritised with full supplies to domestic piped natural gas (PNG) and compressed natural gas (CNG) transport sectors. Industrial and commercial consumers connected to the gas grid are receiving about 80 percent of their average consumption.

City Gas Distribution (CGD) companies have been advised to prioritise PNG connections for commercial establishments such as restaurants, hotels and canteens to address concerns regarding commercial LPG availability. Major CGD companies, including Indraprastha Gas Limited, Mahanagar Gas Limited, GAIL Gas and Bharat Petroleum Corporation Limited, have also offered incentives to encourage domestic and commercial PNG connections.

Authorities have urged states and Union Territories to expedite approvals for expanding CGD networks. Measures include faster disposal of applications, quicker right-of-way permissions and accelerated approval frameworks for pipeline infrastructure.

The government recently notified the Natural Gas and Petroleum Products Distribution Order, 2026 under the Essential Commodities Act, aimed at streamlining pipeline expansion and improving last-mile gas connectivity across the country. CGD entities reported adding 11,089 PNG connections in 110 targeted geographical areas on Wednesday.

LPG supply and allocations

While the geopolitical situation has affected LPG supply, officials said domestic LPG deliveries remain normal and no dry-outs have been reported at distributorships.

The government has restored partial commercial LPG supply and increased allocations to states. Overall allocation has now been raised to 50 percent, with additional supplies prioritised for sectors such as restaurants, hotels, industrial canteens, food processing units, community kitchens and migrant workers.

More than 37,000 small five-kilogram LPG cylinders were sold on Wednesday, largely targeted at migrant labourers and priority users. Since March 14, commercial entities across states and Union Territories have lifted around 25,922 metric tonnes of commercial LPG.

Additional kerosene allocation

An additional 48,000 kilolitres of kerosene has been allocated to states and Union Territories over and above the regular quota. Authorities have asked local administrations to identify district-level distribution points. Seventeen states and UTs have already issued allocation orders.

States asked to curb hoarding and misinformation

The central government has urged states and Union Territories to take strict action against hoarding and black marketing under the Essential Commodities Act and the LPG Control Order.

During a video conference held on March 25 with senior state officials, the Ministry of Petroleum and Natural Gas asked administrations to:

• Conduct daily press briefings and issue regular public advisories

• Set up dedicated control rooms and helplines

• Monitor and counter misinformation on social media

• Intensify enforcement drives and inspections

• Fast-track expansion of gas distribution networks

Authorities reported that more than 2,600 raids were conducted across several states on Wednesday to check hoarding and black marketing of LPG, leading to the seizure of over 450 cylinders. Public sector oil marketing companies also carried out surprise inspections at around 1,700 retail outlets and LPG distributorships. So far, more than 680 FIRs have been registered and 195 people arrested.

Government prioritising households and essential services

Officials said domestic LPG and PNG supplies remain the government’s top priority, followed by hospitals and educational institutions. Measures have also been taken to manage demand, including extending LPG booking intervals in urban and rural areas and promoting alternative fuels such as kerosene, coal and PNG.

Citizens have been advised to avoid panic purchases, rely on official information sources and use digital booking systems for LPG. The government also encouraged households to conserve energy and consider alternate cooking options such as induction or electric cooktops where possible.

Maritime operations remain normal

The Ministry of Ports, Shipping and Waterways said shipping movements and maritime safety are being closely monitored. Port operations across India continue to function normally without congestion.

Currently, 20 Indian-flagged vessels carrying about 540 Indian seafarers remain in the western Persian Gulf, with authorities maintaining constant coordination with ship owners and Indian missions. A 24-hour control room has handled over 4,200 calls and more than 8,200 emails since activation, while facilitating the safe repatriation of over 674 seafarers so far.

Flights improve, passengers returning home

The Ministry of External Affairs said the safety of Indian nationals in the Gulf and West Asia region remains a top priority. Indian missions are operating round the clock, providing assistance to seafarers, students and stranded travellers.

Flight operations from the region are gradually improving, with around 450,000 passengers having returned to India since February 28. Limited and special flights continue to operate from several countries in the region through alternate routes where airspace restrictions remain in place.