'PNG users must surrender LPG connections': Govt moves to protect household fuel supply amid Iran war

Consumers who have piped natural gas (PNG) connections will now be required to surrender their domestic LPG connections under a new government directive aimed at protecting household fuel supply during the ongoing geopolitical crisis in West Asia.

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The Ministry of Petroleum and Natural Gas said on Sunday that an amendment to the LPG Control Order issued on March 14 mandates that consumers already connected to PNG must give up their LPG connections, and prohibits new LPG connections for PNG consumers.

The step is part of a broader set of measures introduced by the government to manage fuel distribution and prevent shortages amid the Iran war and disruptions to global energy flows.

"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 ministry said in a statement.

Petrol and diesel supply stable

The ministry said that all refineries are operating at high capacity and maintaining sufficient 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," it said, adding that 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.

The government also urged consumers to avoid panic buying as adequate stocks of petrol and diesel are available across the country.

Natural gas prioritised for households

The ministry said natural gas supplies are being prioritised for household and transport segments. "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 users in urban areas have been encouraged to shift to PNG connections to reduce pressure on LPG supplies.

The government said LPG distribution remains stable and is being monitored closely, given the geopolitical situation.

The ministry also noted that LPG bookings have declined in recent days. "LPG bookings have shown a decline, with about 77 lakh bookings recorded yesterday compared to 88.8 lakh bookings on 13 March 2026," it said. 

According to the ministry, online LPG cylinder bookings have increased from 84% to about 87%.

Informing about enforcement against hoarding, the ministry said state governments have begun a crackdown to prevent hoarding and black marketing of petroleum products.

"Raids are being carried out in several states, including Andhra Pradesh and Bihar, to check hoarding and black marketing of LPG cylinders," it said, adding that officials from public sector oil marketing companies are also conducting surprise inspections at LPG distributorships.

Additional fuel support measures

The government said it has maximised domestic LPG production from refineries and introduced several supply-side and demand-side measures. Booking intervals for LPG cylinders have been revised to ensure equitable distribution.

"Booking intervals have been rationalised to 25 days in urban areas and up to 45 days in rural areas to ensure equitable distribution," the statement said. 

To support alternative fuel needs, the government has allocated additional kerosene. "An additional allocation of 48,000 KL of kerosene has been provided to States and UTs to support alternate fuel needs."

Officials said alternative fuels are also being used to reduce pressure on LPG demand. "Alternate fuels such as kerosene and coal have been activated for certain sectors, including hospitality and restaurants, to ease pressure on LPG supplies."

Public sector oil marketing companies are promoting digital bookings, discouraging panic bookings, and keeping LPG distributorships open on Sundays to facilitate smooth supply.