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News In Brief Business and Economy

Govt Boosts LPG Supply, Sells 6.6 Lakh Small Cylinders Amid Hormuz Tensions

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Govt Boosts LPG Supply, Sells 6.6 Lakh Small Cylinders Amid Hormuz Tensions
06 Apr 2026
min read

News Synopsis

Amid rising global concerns over potential disruptions in energy supply routes, particularly around the Strait of Hormuz, the Indian government has moved swiftly to strengthen domestic LPG availability.

The Ministry of Petroleum and Natural Gas has reassured citizens that there is no shortage of cooking gas and urged people to avoid panic buying, highlighting robust supply measures and strict monitoring mechanisms.

Surge in 5-Kg LPG Cylinder Availability

Increased Sales to Meet Demand

To ensure easy access to cooking fuel, the government has significantly ramped up the sale of small 5-kg LPG cylinders, commonly known as FTL (Free Trade LPG) cylinders. These cylinders are available over the counter at LPG distributorships upon showing valid ID proof.

"Yesterday (April 4), more than 90,000, 5Kg FTL cylinders were sold. Since March 23, 2026, about 6.6 lakh, 5 Kg FTL cylinders have been sold," the oil ministry said in a statement.

Key Features of 5-Kg FTL Cylinders

  • Available without address proof
  • Sold at market price (non-subsidised)
  • Easily accessible at nearby LPG distributors
  • Ideal for immediate and short-term use

Unlike the subsidised 14.2-kg domestic cylinders, these smaller cylinders provide flexibility and quick availability, helping to ease demand pressures.

Strong Supply Position Across the Country

No Shortage Reported

The government has confirmed that LPG supply remains stable nationwide. More than 51 lakh domestic cylinders were delivered in a single day, reflecting strong logistical capacity and distribution efficiency.

Online bookings have also surged, accounting for 95% of total demand, indicating a well-functioning digital supply chain.

High Refinery Output

All refineries across the country are operating at high capacity with sufficient crude oil inventories, ensuring uninterrupted fuel production and distribution.

Crackdown on Hoarding and Black Marketing

Strict Enforcement Measures

To prevent misuse and ensure fair distribution, authorities have intensified action against illegal activities:

  • Over 50,000 cylinders seized since March
  • More than 1,400 show-cause notices issued
  • 36 LPG dealerships suspended

These measures aim to curb hoarding and black marketing, which can artificially create shortages and drive up prices.

Priority Supply for Essential Services

Focus on Households and Critical Sectors

The government has prioritised LPG and piped natural gas (PNG) supplies for:

  • Households
  • Hospitals
  • Educational institutions

This ensures that essential services remain unaffected during periods of global uncertainty.

Managing Demand Efficiently

To balance supply and demand, authorities have implemented measures such as:

  • Extending LPG refill intervals
  • Promoting smaller cylinder usage
  • Monitoring consumption patterns

Commercial LPG Supply Adjustments

Temporary Restrictions

Commercial LPG supplies have been capped at 70% of pre-crisis levels. This step helps redirect resources toward domestic consumption and critical sectors.

Role of Smaller Cylinders

The increased availability of 5-kg cylinders is helping reduce pressure on larger cylinders, ensuring equitable distribution across users.

Natural Gas Supply Remains Stable

Support for Fertiliser and Transport Sectors

The government has maintained full natural gas supplies for households and transport. Additionally, supplies to fertiliser plants are set to rise to about 90% of average consumption from April 6, supported by incoming LNG shipments.

This move is crucial for maintaining agricultural productivity and ensuring food security.

Government Urges Public to Stay Calm

Avoid Panic Buying

The Ministry has reiterated that fuel supplies are stable and sufficient across the country. Citizens have been advised to rely on official updates and avoid unnecessary stockpiling.

Robust Distribution Network

India’s extensive LPG distribution network, supported by digital booking systems and efficient logistics, continues to ensure seamless delivery even during global uncertainties.

Conclusion

India’s proactive approach to managing LPG and natural gas supplies amid concerns over the Strait of Hormuz demonstrates strong preparedness and resilience. By increasing the availability of 5-kg cylinders, maintaining high refinery output, and taking strict action against hoarding, the government has ensured uninterrupted access to essential fuels.

With continued monitoring and citizen cooperation, the country is well-positioned to navigate potential global supply disruptions without major impact on daily life.

TWN Exclusive