In a move aimed at safeguarding household cooking gas supply amid global energy uncertainties, the Central Government has decided to prioritise domestic LPG distribution and restrict commercial LPG supplies. The decision comes in the backdrop of limited LPG imports from Middle East countries due to the ongoing conflict involving the US, Israel and Iran.
Following the directive, the supply of commercial LPG cylinders has been stopped at plants operated by Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) in Nagpur and Wardha districts. Dealers have also been instructed not to send vehicles to collect commercial cylinders until further orders, sources said.
The order was issued by the Ministry of Petroleum and Natural Gas on March 5, 2026, after a high-level review meeting chaired by Union Petroleum Minister Hardeep Singh Puri amid concerns over the global energy supply chain.
According to the official order, the Central Government has directed all oil refining companies operating in India to maximise the use of propane and butane streams exclusively for the production of liquefied petroleum gas (LPG) to ensure adequate supply for domestic consumers.
Refineries have also been prohibited from diverting propane or butane streams for petrochemical production or other downstream products, ensuring that the entire output is utilised for LPG manufacturing.
The order further states that the LPG produced from these streams must be supplied only to the three public sector oil marketing companies — IOCL, BPCL and HPCL — which together supply more than 99% of domestic LPG used by households across the country.
Authorities emphasised that LPG is an essential household fuel used for cooking, and uninterrupted supply is necessary to protect public interest and maintain daily life across the country. The directive has been issued under the Essential Commodities Act, 1955 and the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999.
Officials said the restrictions on commercial LPG supply are temporary and intended to prevent any disruption in domestic LPG availability, especially at a time when global geopolitical tensions are affecting fuel supply chains.
The order has come into effect immediately and will remain in force until further directions from the Central Government.
Industry observers say the step reflects a “war-like precautionary measure” to secure cooking gas supplies for households in case global energy markets face further disruptions due to the ongoing West Asia conflict.
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