Government Debunks Fuel Shortage Rumors: 5.5 Million LPG Cylinders Delivered In Single Day

NEW DELHI — The Ministry of Petroleum and Natural Gas issued a comprehensive update on Sunday, March 29, 2026, assuring the public that fuel and LPG supplies remain stable across India despite the ongoing geopolitical volatility in the Middle East. While “unusually high sales” were reported due to social media rumors, the government confirmed that logistics chains are operating at full capacity.

1. LPG Supply: Record Deliveries and Digital Security

To counter fears of a shortage caused by the closure of the Strait of Hormuz, Oil Marketing Companies (OMCs) have scaled up operations:

• Massive Volume: Over 55 lakh (5.5 million) LPG refills were delivered on Saturday alone.
• Online Surge: Digital bookings for cylinders have jumped from 84% to 94% since mid-March, reflecting a shift toward transparent scheduling.
• Anti-Diversion Measures: To prevent distributors from diverting domestic gas to the black market, Delivery Authentication Code (DAC) usage was ramped up to 84% of all deliveries on Saturday, compared to just 53% in February.

2. Petrol and Diesel: Fighting Panic Buying

The Ministry acknowledged that “panic buying” had caused localized crowding at retail outlets in several states.

• Network Strength: India currently operates 1,02,075 fuel retail outlets (90% state-run), all of which are reported to be functioning without disruption.
• Price Relief: The government’s recent ₹10 per litre excise duty cut on petrol and diesel continues to provide a buffer for refiners against the $112.57 per barrel Brent crude price.
• Export Restrictions: To prioritize the domestic market, the government has maintained stiff export levies of ₹21.5/L on diesel and ₹29.5/L on ATF.

3. Strategic Shift to Natural Gas

As part of a long-term strategy to reduce dependence on imported LPG, the Ministry is aggressively pushing for a transition to Piped Natural Gas (PNG):

• Priority Allocation: Domestic PNG and transport CNG are receiving 100% supply priority.
• Commercial Shift: Hotels, restaurants, and canteens have been advised to switch to PNG to ease the pressure on commercial LPG cylinders.
• Industrial Impact: Supply to urea plants remains steady at 70–75%, while the government is actively sourcing additional LNG and R-LNG cargoes to fill the spot-market gap.

4. Global Context: The $112 Oil Reality

The supply chain stress is a direct result of the escalating conflict in West Asia, which has seen global benchmark Brent crude rise nearly 58% in just one month. The Ministry reiterated that while the Strait of Hormuz remains a bottleneck, proactive measures are in place to ensure “no reported dry-outs” at any distributorships.

Energy Availability Snapshot (March 30, 2026)