Central govt instructs states, UTs to monitor LPG supply, take strict action against black marketing

The central government on Wednesday instructed all states and Union Territories to closely monitor the supply of liquefied petroleum gas (LPG) to combat hoarding and black-market activities. During a high-level meeting, Union Home Secretary Govind Mohan urged Chief Secretaries and Directors General of Police (DGPs) to implement rigorous measures against the illegal stockpiling of essential commodities and to guarantee a steady flow of supplies, as reported by ANI.

The Union Ministry of Petroleum and Natural Gas announced that domestic LPG production has risen by approximately 25%, with the entire output currently being diverted to household consumers. For non-domestic LPG, the ministry stated that priority is being allocated to critical sectors, including hospitals and educational institutions.

In Delhi, the price of a domestic LPG cylinder currently stands at ₹913, following a recent ₹60 hike. However, the price for PMUY beneficiaries remains subsidized at ₹613 per cylinder. To support the industry, the government has approved a ₹30,000 crore compensation package for oil marketing companies to cover LPG under-recoveries.

India relies on imports for roughly 60 percent of its LPG consumption. Significantly, about 90 percent of these imports transit through the Strait of Hormuz, a passage currently impacted by regional hostilities. Consequently, a three-member committee of Executive Directors from IOCL, HPCL, and BPCL has been formed to oversee allocations for hotels, restaurants, and commercial entities, ensuring equitable distribution of existing stocks.

Regarding natural gas, the government enacted a Natural Gas Control Order on March 9, 2026, under the Essential Commodities Act. This move aims to manage supplies and safeguard priority sectors. Officials confirmed that domestic Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) for vehicles will receive 100 percent of their required supply without any reductions.

"In light of current geopolitical disruptions to fuel supply and constraints on the supply of LPG, the ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the ministry said in the social media post on X.

The Delhi Police and the Revenue Department have been placed on high alert to prevent irregularities. Earlier in the day, Chief Secretary Rajeev Verma reviewed the logistics and issued directives to relevant departments. The government concluded its appeal by asking citizens to remain calm and avoid unnecessary hoarding or panic-buying fueled by misinformation.