Govt Urges Shift To PNG As LPG Situation Remains ‘Concerning’; Assures No Fuel Shortage

New Delhi: The Centre on Wednesday said that while there is no shortage of petrol, diesel or crude supplies, the LPG situation remains “a concern” amid the ongoing West Asia crisis, prompting the government to push for a faster transition from LPG to piped natural gas (PNG) and intensify enforcement against hoarding and black marketing.

At an inter-ministerial media briefing, officials from the Ministry of Petroleum and Natural Gas, the Ministry of Ports, Shipping and Waterways and the Ministry of External Affairs outlined coordinated measures to secure energy supplies, safeguard maritime operations and ensure the safety of Indian nationals in the Gulf region.

Sujata Sharma, Joint Secretary in the Petroleum Ministry, said the overall fuel supply chain remains stable even as authorities closely monitor LPG availability. “Our crude availability remains normal, and refineries are operating at full capacity. Domestic LPG production has increased by 40%, and no dry-out has been reported at retail outlets. Adequate stocks of petrol are available at fuel stations,” she said.

She added that compressed natural gas (CNG) and PNG supplies are being maintained without any cuts, and urged consumers, especially commercial users, to switch fuels where infrastructure is available.

“We appeal to LPG consumers, especially commercial users, to shift to PNG wherever possible, and to CNG where CGD networks are available,” Sharma said.

Push For PNG Expansion

In a significant policy push, the government has asked states and Union Territories to expedite approvals for city gas distribution (CGD) networks and reduce procedural delays in granting connections.

The Petroleum and Natural Gas Regulatory Board has asked the gas distribution companies to reduce the time it takes to get a gas supply connection. The Centre has also contacted the states asking that they make it easier for people to get these connections by fast-tracking approvals, waiving road restoration fees and making it easier to obtain a regulatory approval.

Incentives for the state governments to reform the gas distribution process will be an extra allocation of 10% commercial LPG to each of the states that are able to have a more rapid adoption of the PNG network. The incentives will be linked to reforms such as establishing district monitoring committees, providing a single point of contact for approvals and reducing lease or rental costs related to pipeline infrastructure.

A recent publication by Secretary of the Ministry of Petroleum Neeraj Mittal pointed out that the slow expansion of PNG distribution has been due to high local taxes and procedural hurdles, which have inhibited the transition to adopting PNG in place of LPG.
Officials said bridging the gap between approved and functional PNG connections could significantly reduce dependence on LPG in the long term.

LPG Situation Still Under Watch

Despite adequate overall fuel availability, Sharma acknowledged that the LPG segment remains under pressure due to global supply uncertainties.

“However, the LPG situation remains a concern. While 93% of bookings are now online, we urge consumers to wait for home delivery after booking and avoid visiting distributors,” she said.

Long queues have been reported at several LPG distributorships in recent days, driven largely by panic buying. The government reiterated that consumers should avoid crowding and rely on digital booking platforms.

Officials said around 81% of LPG deliveries are now authenticated through digital codes, a significant improvement from earlier levels, indicating better tracking and reduced leakages.

The Centre has also ensured that commercial LPG supplies have been allocated across 15 states and Union Territories, while additional kerosene allocations have been provided to about 12 states to manage demand.

Enforcement Tightened Across States

To curb hoarding and diversion, enforcement actions have been stepped up under the Essential Commodities Act. Sharma said state governments have been asked to conduct coordinated inspections at petrol pumps, LPG distributorships and storage facilities.

“Enforcement actions, including raids and seizures, are ongoing against malpractice,” she said, adding that PSU teams have conducted surprise inspections at around 2,300 outlets.

Control rooms have been set up in nearly 30 states and Union Territories, while district-level monitoring committees are operational in several regions to ensure smooth supply and quick response to complaints.

Shipping and Logistics Stable

Providing an update on maritime operations, Rajesh Kumar Sinha, Special Secretary in the shipping ministry, said LPG carriers Shivalik and Nanda Devi have already reached Indian shores, and cargo discharge is currently underway.

He added that ports are functioning smoothly, with additional berthing capacity created at Visakhapatnam Port to handle increased traffic. No congestion has been reported at major ports, while container traffic pressure at Jawaharlal Nehru Port has eased.

Diplomatic Outreach and Citizen Safety

On the international front, the Ministry of External Affairs said India continues to engage actively with countries in the Gulf region to ensure the safety of its citizens and energy interests.

MEA spokesperson Randhir Jaiswal said Prime Minister Narendra Modi has spoken with leaders of the United Arab Emirates and other regional counterparts, reiterating India’s concerns and seeking stability.
He added that several Indian nationals in Iran have begun crossing borders into Armenia and Azerbaijan, following government advisories.

Aseem Mahajan, Additional Secretary handling Gulf affairs, said the safety of Indian citizens remains the highest priority, with special attention being given to students in the region. “Flights continue to operate, and we are coordinating closely to ensure their safety,” he said.

Appeal Against Panic

The government concluded the briefing with a strong appeal to citizens to avoid panic buying and misinformation.

“Do not believe rumours, rely only on official sources, use digital booking modes and conserve energy wherever possible,” Sharma said, reiterating that while the global situation remains sensitive, India’s fuel supply chain continues to function smoothly.