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Economy News

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(16 Mar 2026, 11:54)

Government assures on energy supply and fuel availability, says all refineries are operating at high capacity


The government has provided a detailed update on key sectors in view of developments in West Asia. These relate to energy supply management, maritime operations, the welfare of Indian nationals in the region and public communication measures. The focus has primarily been on Energy Supply and Fuel Availability. Steps have been taken to ensure stable availability of petroleum products and LPG across the country. Necessary arrangements are in place to maintain regular supply and distribution. The current position is as follows:

Crude/Refineries: All refineries are operating at high capacity and maintaining adequate crude oil inventories. Our country remains self-sufficient in the production of petrol and diesel and, no imports of petrol and diesel are required to meet domestic demand.

Retail Outlets: No cases of fuel dry-outs have been reported at retail outlets by Oil Marketing Companies, and supplies of petrol and diesel continue to be maintained regularly.
Natural Gas: Priority sectors continue to receive protected gas supplies, including 100% supply to PNG and CNG, while supplies to industrial and commercial consumers are being regulated at about 80%. Commercial LPG consumers in major cities and urban areas are encouraged to opt for PNG connections and may apply through email, letter or the customer portal of City Gas Distribution (CGD) companies. A meeting was held on 14 March 2026 by senior officials of the Ministry of Petroleum and Natural Gas with PNGRB and CGD entities to review the status of PNG connections and LPG-to-PNG conversion.

LPG: LPG supply continues to be monitored in view of the prevailing geopolitical situation. LPG bookings have shown a decline. Several States and UTs including Bihar, Delhi, Haryana and Rajasthan have issued orders for allocation of non-domestic LPG in line with Government guidelines.
Meetings conducted by State Governments:  High-level meetings have been conducted in several States and UTs to review LPG supply, ensure continuity of distribution and prevent black marketing and panic booking.

Enforcement action: State Governments are undertaking enforcement measures to prevent hoarding and black marketing of petrol, diesel and LPG.
Other Government Measures:  The Government continues to prioritise the interests of domestic consumers and ensure uninterrupted LPG supply, particularly for households and priority sectors such as hospitals and educational institutions.

An amendment to the LPG Control Order issued on 14 March 2026 requires consumers with PNG connections to surrender their domestic LPG connections and prohibits new LPG connections for PNG consumers.

An additional allocation of 48,000 KL of kerosene has been provided to States and UTs to support alternate fuel needs.

Alternate fuels such as kerosene and coal have been activated for certain sectors, including hospitality and restaurants, to ease pressure on LPG supplies.
PSU Oil Marketing Companies are promoting digital bookings, discouraging panic bookings and keeping LPG distributorships open on Sundays to facilitate smooth supply.

Public Advisory: Citizens are advised not to panic as the Government remains committed to maintaining adequate LPG availability for households and essential sectors.

Maritime Safety and Shipping Operations: Appropriate measures are in place to ensure the safety of Indian vessels and seafarers operating in the region. Coordination with shipping authorities and industry stakeholders is being maintained to support smooth maritime operations. 

Safety of Indian Nationals in the Region: Indian Missions and Posts remain in touch with the Indian community and are providing assistance wherever required. Necessary advisories continue to be issued for the safety and well-being of Indian nationals. Since 28 February 2026, around 1,94,000 passengers have returned from the region to India.
The Government continues to maintain coordination among the concerned Ministries and agencies and is taking necessary steps to ensure preparedness across key sectors and safeguard national interests.


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