The government confirmed on Sunday that fuel and LPG supplies across the nation remain stable, despite a surge in panic buying triggered by unfounded rumours. On Saturday alone, oil marketing companies successfully delivered approximately 5.5 million cylinders, while petrol stations and diesel outlets continued to operate without disruption.
In its latest energy update, the Ministry of Petroleum and Natural Gas acknowledged that heavy crowding had been observed at some retail points due to misinformation. While the volatile geopolitical climate has placed some strain on the broader supply chain, the ministry stated there have been no recorded "dry-outs" at LPG distributorships. To ensure security and prevent the diversion of stock, delivery authentication code (DAC) protocols have been ramped up significantly, rising from 53 per cent in February to 84 pc this past weekend. Online bookings have also seen a sharp uptick, now accounting for 94 pc of industry sales.
With the Strait of Hormuz remaining shut, officials are taking proactive steps to safeguard the country’s energy security. These measures come at a time of extreme market pressure; benchmark Brent crude has climbed nearly 58 pc in the last month, reaching $112.57 a barrel as of March 27.
To shield refiners from mounting losses and manage domestic prices, the government recently slashed excise duty on petrol and diesel by ₹10 per litre. Simultaneously, strict export levies of ₹21.5 per litre on diesel and ₹29.5 per litre on aviation turbine fuel have been introduced to prioritise the domestic market.
This strategy also involves a concerted effort to increase the supply of natural gas. Piped Natural Gas and Transportable CNG are currently being supplied at 100 per cent of their requirements, and industrial and commercial grid supply is being met at around 80% of their normal consumption. The City Gas Distribution companies have been asked to give priority to PNG supply for industrial and commercial consumers such as hotels and restaurants to ease the pressure on commercial LPG supply. The urea plants are operating at a steady rate of around 70-75 pc of their recent average.
To bolster these efforts, the ministry is sourcing additional liquefied natural gas (LNG) cargoes. Industrial consumers and fertiliser plants have been advised to coordinate their extra needs on a spot basis through gas marketing companies. As of early March 2026, the nation's fuel infrastructure remains robust, supported by over 102,000 retail outlets operated by both state-run giants and private players such as Shell, Nayara Energy, and Jio-bp.
Also read: 27 LPG cylinders stolen in Mumbai
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