India Weighs LPG Supply Measures Amid West Asia Crisis, Govt Denies Underweight Cylinder Claims

Amid the ongoing geopolitical tensions in West Asia and rising concerns over LPG availability, oil marketing companies (OMCs) in India are reportedly exploring contingency measures to ensure a more balanced distribution of cooking gas. One such proposal under consideration involves supplying slightly underweight cylinders as a temporary step to manage supply constraints.

Officials from the Ministry of Petroleum and Natural Gas, however, have firmly dismissed reports suggesting that OMCs may begin distributing only 10 kg of LPG in standard 14.2 kg domestic cylinders. Describing such claims as “highly speculative,” the ministry has urged the public not to be misled by unverified information.

Despite the official denial, sources within the refining sector indicate that a proposal addressing supply adjustments has indeed been submitted to the government. According to a senior official from a state-run OMC, while such measures are being examined, any final decision rests solely with the government.

Joint Secretary in the ministry, Sujata Sharma, reiterated that the reports are unfounded and emphasised that there is no cause for concern. She noted that the demand for LPG refills has stabilised at approximately 50 lakh bookings, while supply operations continue without disruption.

To mitigate supply risks, domestic refiners have significantly increased LPG production, raising the share of locally met demand to nearly 50–60 percent, up from around 40 percent previously. This shift reflects efforts to reduce dependence on imports amid a volatile global environment.

The ongoing conflict has also disrupted maritime traffic through the strategically critical Strait of Hormuz, impacting the flow of oil and gas shipments. In response, the government has prioritised domestic consumption while curtailing supplies to commercial sectors.

India currently relies on imports for nearly 60 percent of its LPG requirements. Recent data indicates a sharp decline in inbound shipments, with no fresh cargoes reported to be en route to Indian ports. Only a limited number of vessels crossed the strait in the past week, carrying volumes sufficient to meet barely a day’s national demand. Additionally, several LPG carriers bound for India remain stationed in the Persian Gulf, awaiting clearance amid ongoing uncertainties.