India LPG Review: In response to the escalating conflict in West Asia and the subsequent oil crisis, India has mandated a significant increase in the production of liquefied petroleum gas (LPG) for domestic use. The Ministry of Petroleum and Natural Gas (MoPNG) issued a directive on March 9, 2026, ordering oil refineries to prioritize domestic LPG supply.
The ministry’s statement highlighted the current geopolitical disruptions affecting fuel supplies and emphasized the need to ensure adequate LPG availability for Indian households. “To address the constraints on LPG supply, we have instructed oil refineries to boost production and prioritize domestic usage,” the statement read.
To prevent hoarding and black marketing, a 25-day inter-booking period has been introduced for domestic LPG cylinders. Additionally, the government has prioritized non-domestic LPG supplies for essential services such as hospitals and educational institutions.
The Federation of Hotel and Restaurant Associations of India (FHRAI) has expressed concerns over the impact on the hospitality sector, urging the government to clarify the restrictions. “We request a formal clarification to ensure seamless LPG distribution for commercial use,” stated FHRAI Secretary General Jaison Chacko.
The ongoing US-Israel and Iran conflict has caused a surge in oil prices, further exacerbating the LPG supply issues. A committee of executive directors from oil marketing companies has been formed to assess and manage the LPG distribution to non-domestic sectors.
Published in SouthAsianDesk, March 10, 2026
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