On 9 March 2026, the Ministry of Petroleum and Natural Gas (MoPNG) has directed oil refineries to increase Liquefied Petroleum Gas (LPG) production and instructed them to ensure that all the additional output will be diverted exclusively for domestic household use.
Key Highlights of Petroleum Ministry’s Order on LPG Production:
-
This Order is in response to current geopolitical disruptions affecting fuel supply and tightening the availability of LPG.
-
According to the Ministry, the orders have been issued to oil refineries to increase LPG production and direct the additional output specifically toward domestic LPG use.
-
As part of these measures, the Ministry has prioritised domestic LPG supply to households and introduced a 25day inter-booking period to prevent hoarding and black marketing.
-
The Ministry has further announced that the non-domestic supplies from imported LPG are being prioritised for essential sectors, including hospitals and educational institutions, to ensure uninterrupted functioning of critical services even amid strained supply conditions.
-
Addressing the concerns of commercial establishments, the Ministry has also set up a committee of 3 Executive Directors from Oil Marketing Companies (OMCs).
-
This committee will review requests for LPG supply from restaurants, hotels, and other industrial users, following widespread reports of shortages affecting the hospitality sector.
The Government has taken these steps with the aim to prevent LPG shortage and maintain orderly distribution during a volatile period for global markets.