LPG Supply Status in India: Stability in Domestic Segment Amid Geopolitical Pressures

India’s LPG (Liquefied Petroleum Gas) supply system continues to operate under pressure due to the prevailing geopolitical situation. However, recent data from the government of India indicates that domestic supply remains stable, with strong distribution performance and no major disruptions reported across the country.

Domestic LPG Supply Remains Stable

Despite external challenges, domestic LPG supply in India remains normal, with no instances of dry-outs reported at LPG distributorships. The distribution network continues to function efficiently, ensuring an uninterrupted household supply.

Key indicators highlight strong operational performance:

• Online LPG bookings have risen significantly, reaching around 98% across the industry
• Delivery Authentication Code (DAC)-based deliveries have increased to nearly 93%, strengthening transparency and reducing diversion risks
• On April 11, 2026, more than 52.3 lakh domestic LPG cylinders were delivered nationwide

These figures reflect the resilience of India’s domestic LPG ecosystem, supported by robust logistics and digital verification systems.

Strengthening Distribution and Preventing Diversion

The sharp increase in DAC-based deliveries highlights the government’s continued focus on preventing misuse and ensuring that LPG cylinders reach genuine consumers. The rise in online bookings also reflects growing digital adoption in the fuel distribution system, improving efficiency and traceability.

Commercial LPG Supply: Allocation Improved

On the commercial front, LPG availability has also been strengthened through policy interventions. Total commercial LPG allocation has been increased to about 70% of pre-crisis levels, which includes a 10% reform-linked allocation aimed at improving supply stability.

A total of 1,20,898 MT of commercial LPG, equivalent to more than 63.6 lakh 19-kg cylinders, has been sold since 14 March 2026. On April 11, 2026, alone, 7,665 MT of commercial LPG (over 4 lakh cylinders) was sold, indicating steady industrial demand recovery.

Support Measures for Migrant Labourers

To ensure energy access for vulnerable groups, the Government of India has expanded support for 5-kg Free Trade LPG (FTL) cylinders for migrant labourers. As per the latest directive dated April 06, 2026, the daily allocation in each state has been doubled beyond earlier limits.

Key developments include:

• Over 13 lakh 5-kg FTL cylinders sold since 23 March 2026
• On April 11, 2026, more than 1 lakh kg FTL cylinders were sold, significantly higher than the February 2026 daily average of 77,000 kg
• PSU Oil Marketing Companies (OMCs) have conducted around 3,300 awareness camps in the last 8 days, promoting access to 5-kg cylinders
• More than 35,800 cylinders were sold during these awareness drives

These measures are being implemented with coordination between state governments and OMCs to ensure targeted distribution.

Coordinated Industry Efforts

A three-member committee comprising Executive Directors from IOCL, HPCL, and BPCL is actively working with state authorities and industry stakeholders to streamline commercial LPG distribution and ensure efficient supply chain management across regions.

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Conclusion

India’s LPG sector continues to demonstrate resilience despite geopolitical challenges. While commercial supply is being carefully managed through allocation adjustments, the domestic segment remains highly stable, supported by digital adoption, strong logistics, and coordinated government interventions.

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