What’s the situation of LPG, petrol and diesel in India amid West Asia conflict?

Amid concerns over fuel supply disruptions triggered by the ongoing West Asia conflict, the Centre has asserted that petrol, diesel and domestic LPG remain adequately available across the country.

The Ministry of Petroleum and Natural Gas said the government is taking multiple measures to ensure uninterrupted fuel supplies and urged citizens to avoid panic buying or hoarding.

“Govt. is making all efforts to ensure availability of Petrol, Diesel and LPG, and citizens are advised to avoid panic purchase of petrol and diesel as well as unnecessary booking of LPG,” the ministry said in a statement, adding that refineries are operating at high capacity and the country has adequate crude inventories.

Commercial LPG hit, eateries struggle

The situation on the ground in several states point to stress in commercial LPG and Auto LPG segments.

In Uttarakhand, dhaba owners and small eateries in Dehradun and Rishikesh reported shortages and rising prices of commercial cylinders, forcing many to switch to alternatives like wood and coal.

In Rishikesh, a key gateway to the Char Dham pilgrimage, some restaurants have reportedly shut operations due to inadequate supply.

Similar disruptions have been reported in Surat, where dhaba operators said food prices have increased due to higher fuel costs.

The Centre has capped commercial LPG supply at about 70% of pre-crisis levels and prioritised domestic LPG, hospitals and essential services.

It has also ramped up distribution of smaller 5-kg cylinders and encouraged the use of alternate fuels such as PNG, kerosene and electric cooking solutions.

Indian Oil Corporation (IOCL) said that Indane distributors across the country are operating normally and older bookings are being cleared on priority. Customers are being guided on booking norms and assured of home delivery.

"LPG supplies remain regular, and deliveries are being carried out as per the booking sequence. Customers are requested to avoid panic and unnecessary queues at distributorships," it posted on X.

Auto LPG shortage impacts transport

In Karnataka, shortages of Auto LPG have disrupted auto-rickshaw services, particularly in Bengaluru, where long queues have been reported at dispensing stations.

IOCL said it has increased supplies in the state but infrastructure constraints and the closure of a large number of private Auto LPG outlets have created a supply gap.

“Nearly 80% of private Auto LPG stations are non-operational due to geopolitical challenges,” the company said, adding that its daily supply in Karnataka has been ramped up to 68.53 metric tonnes from about 43.5 MT in February.

With PSU-operated stations selling Auto LPG at lower prices than private players, the shift in demand has resulted in longer waiting times.

“In light of the current situation, users are encouraged to temporarily switch to petrol as an alternative fuel. Similar transitions have already been observed in markets such as Puttur and other areas where OMC-operated ALDS are limited, demonstrating the practicality of this approach,” the release said.

Petrol, diesel supply stable

Despite the disruptions in LPG segments, petrol and diesel supplies remain stable, with all retail outlets functioning normally, according to the government.

The Centre has reduced excise duty on petrol and diesel by ₹10 per litre and imposed export levies on diesel and aviation turbine fuel to boost domestic availability.

The government has also stepped up monitoring to prevent hoarding and black marketing, with over 50,000 LPG cylinders seized and more than 1,400 show-cause notices issued to distributors since March.

The government has urged citizens to conserve fuel, use digital modes for LPG booking, and adopt alternative fuels where possible.

LPG vessels

According to media reports, India-flagged vessel Green Asha has successfully transited the Strait of Hormuz. This marks the eighth India-flagged LPG vessel to transit the Strait since February 28, when the war began.

On Saturday, Gujarat Deputy Chief Minister Harsh Sanghavi informed that an Indian LPG carrier, Green Sanvi, had safely crossed the Strait of Hormuz, describing the development as a "victory of Indian diplomacy".

"One more ship. One more victory for Indian diplomacy. LPG carrier Green Sanvi has crossed the Strait of Hormuz and is on its way home to India," Sanghavi wrote on social media platform X on April 4.