No fuel shortage, says petroleum ministry; govt tightens grip on LPG hoarding

Amid concerns over fuel supply disruptions due to geopolitical developments in West Asia, the Ministry of Petroleum and Natural Gas on Tuesday assured that the country has sufficient crude oil reserves and that refineries are operating at full capacity, with no shortages reported at retail outlets. 

Addressing an inter-ministerial briefing, Sujata Sharma, Joint Secretary (Marketing and Refineries), said petrol and diesel supplies remain adequate and there is currently no requirement for imports. 

“Refineries are operating at maximum capacity and we have adequate stocks of petrol and diesel,” Sharma said. 

LPG supply under watch, no shortage for households 

While acknowledging concerns around LPG availability, Sharma clarified that there is no shortage for domestic consumers and supplies continue as usual. “No LPG distributor is facing a dry-out situation at present. Cylinder deliveries for domestic consumers are continuing without disruption,” she said. 

The government has ramped up LPG production by 38% by diverting additional feedstock into the LPG pool to boost supplies. 

Digital systems have also improved significantly, with nearly 94% of LPG bookings now being made online, while delivery authentication compliance has reached 76%. 

Crackdown on black marketing intensifies 

Authorities have stepped up enforcement to curb black marketing and hoarding of LPG cylinders. Around 12,000 raids have been conducted and nearly 15,000 cylinders seized till March 16. 

Enforcement actions have been reported across multiple states, including Delhi, Uttar Pradesh, Jammu & Kashmir, Kerala, and Madhya Pradesh, with inspections, seizures and arrests carried out. Oil marketing companies have also conducted surprise checks at about 2,500 retail outlets and LPG distributorships. 

Commercial LPG supply partially restored 

Commercial LPG supplies, which were initially halted, have now been partially restored. Cylinders allocated to states and Union Territories are being distributed as per requirements. 

Several states, including Bihar, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Manipur, Rajasthan, and Uttarakhand have issued allocation orders for non-domestic LPG. To ease pressure on LPG consumption, alternative fuels such as kerosene and coal have also been activated. 

Push for infrastructure expansion 

The Centre has directed states and Union Territories to expedite approvals for pending applications related to city gas distribution (CGD) pipelines to strengthen supply infrastructure. 

Officials reiterated that while LPG supply remains an area of close monitoring, there is no disruption in domestic availability, even as the government continues to take proactive steps to stabilise the overall fuel supply chain.