Refineries Run At Full Capacity, LPG Output Surges 40% To Boost Domestic Supply: Centre
At the Inter-Ministerial Briefing on Recent Developments In West Asia, officials from the petroleum, shipping, and external affairs ministries outlined the government's preparedness across sectors.
Published : March 20, 2026 at 3:50 PM IST
|Updated : March 20, 2026 at 8:17 PM IST
New Delhi: The Centre on Friday stated that it has increased its operations at refineries, found an increased volume of domestic production of liquefied petroleum gas (LPG), and has increased the pace of gas infrastructure development in order to ensure the continued supply of fuels to the country.
Addressing an inter-ministerial briefing, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said refineries are currently operating at peak capacity, with adequate crude inventories and sufficient stocks of petrol and diesel being maintained.
"Refineries across the country are running at the highest levels to meet demand. Domestic LPG production has increased by around 40 per cent compared to pre-crisis levels," she said, underlining efforts to cushion the impact of global disruptions.
No Fuel Shortage, Govt Urges Public to Avoid Panic Buying
Officials emphasised that there has been no disruption in fuel availability at the consumer level. Oil marketing companies have reported no instances of dry-outs at petrol pumps or LPG distributorships, with supplies continuing normally.
Authorities also urged citizens to avoid panic buying, noting that such behaviour can strain distribution systems unnecessarily. Panic booking of LPG cylinders has already declined significantly, from 89 lakh requests on March 13 to about 55 lakh recently, indicating improving consumer confidence.
“Delivery of LPG cylinders is normal, and authentication-based systems are ensuring smooth distribution,” Sharma said.
LPG Remains a Concern, But Supply Stable
Despite the overall stability, LPG remains a sensitive area due to India’s high dependence on imports, particularly from the Middle East.
The government acknowledged that while LPG availability is under pressure, no supply disruptions have been reported so far. Around 11,300 tonnes of LPG have been supplied to commercial consumers in recent days, reflecting steady distribution.
To ease demand, the government is pushing a transition from LPG to piped natural gas (PNG). In recent days:
Over 13,700 new PNG connections have been issued
Around 7,500 consumers have shifted from LPG to PNG
City Gas Distribution (CGD) companies such as Indraprastha Gas Limited, Mahanagar Gas Limited, GAIL and Bharat Petroleum have been directed to prioritise PNG connections, especially for commercial establishments like hotels and restaurants.
Digital Push Enhances Access to Fuel Services
According to the government, digital adoption has grown dramatically in fuel services. Around 93% of LPG bookings are now made online, improving access and helping to reduce congestion at distributors.
Officials said digital options combined with delivery routing via your phone and other methods help reduce displacement and create equal distribution.
Crackdown on Hoarding and Black Marketing
Enforcement agencies have stepped up their investigations of hoarding and black marketing using regular inspections.
Over 4,500 raided in last 24 hours
Over 4,000 LPG cylinders seized
Public-sector oil companies conducted over 1,800 unannounced inspections
States reporting major enforcement actions include Uttar Pradesh, Tamil Nadu, Kerala, Punjab, Rajasthan, and Delhi.
The government is using the Essential Commodities Act and related provisions against the black-market, undeclared LPG, and improper LPG utilization.
Kerosene, Alternate Fuels Rolled Out
As part of contingency planning, the government has also increased the availability of alternative fuels.
Some states and territories will also receive an added supply of 48,000 kilolitres of kerosene for household and small business cooking needs in the event of issues obtaining propane gas (LPG). Therefore, consumers should look into alternate forms of cooking, such as gas, electric, induction stoves, etc., while industry may have to look for using furnace oil, coals or other fuels based on feasibility.
Petrol and Diesel Prices Stable
On fuel pricing, Sharma clarified that there has been no increase in the price of normal petrol or diesel for consumers.
“There has been only a marginal increase in premium petrol, which accounts for just 2–4 per cent of total sales,” she said.
Fuel prices in India have been deregulated for years, petrol since 2010 and diesel since 2014, meaning oil marketing companies determine retail prices based on global trends.
Similarly, aviation turbine fuel (ATF) prices have been deregulated since 2001.
Gas Supply Prioritised for Households, Transport
The government said natural gas supplies are being carefully managed to prioritise essential sectors.
100% supply is being maintained for domestic PNG and CNG transport
Supply to industrial and commercial users has been moderated to about 80%
The Petroleum and Natural Gas Regulatory Board has directed CGD companies to fast-track connections and reduce waiting times, while states have been urged to expedite approvals for network expansion.
Maritime Operations Stable, Ships Safe
On the shipping front, the government reassured that India’s maritime operations remain unaffected despite tensions near the Strait of Hormuz.
According to Rajesh Sinha, Special Secretary in the Ministry of Ports, Shipping and Waterways:
22 Indian-flagged vessels in the Persian Gulf region are safe
611 Indian seafarers onboard are secure
No maritime incidents have been reported in the past 24 hours
Ports across India, including major facilities on both coasts, are functioning smoothly with no congestion reported.
Authorities have also ramped up monitoring through a 24×7 control room, which has handled thousands of calls and emails since activation.
Evacuations and Cooperation Internationally
In addition to monitoring the safety of Indian nationals and conducting operations at its overseas missions, the Ministry of External Affairs reported that Indian Missions are available 24 hours a day to assist its citizens who are the subject of evacuation from jurisdictional areas.
Prime Minister Modi continues to work with other heads of state including Oman, France, Jordan and Qatar to push for de-escalation and safe passage of energy supplies through traditional transport routes such as the Strait of Hormuz.
States Working to Increase Monitoring of Fuel Supplies
The Indian government directed all states and Union Territories to conduct regular inspections and monitor all fuel, fuel outlet operating locations as well as LPG distributors. Other requirements include:
a) Working with law enforcement to prevent hoarding and black market sales by monitoring locations of storage and production for fuel at stations.
b) Ensuring movement of all fuel tankers to ensure uninterrupted deliveries to fuel outlets.
c) Issuing public service announcements to counter any misinformation regarding availability of fuel.
To date, 32 states and Union Territories (UT) have opened monitoring (control) rooms and most are conducting daily press briefings to update their respective citizens as to the availability of fuel supplies.
Monitoring the Situation
Although the Central Government has claimed that they have adequate fuel supplies to meet current and anticipated consumer demand, they continue to monitor closely that fuel supply availability for the future due to ongoing tensions between nations throughout the world.
“The situation is still worrying due to the war, but supplies are being maintained and no disruptions have been reported at the consumer level,” Sharma said.
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