LPG Gas Shortage: India Prioritizes Cylinders for Homes Now!

By Aditya Nagar | March 11, 2026

The Indian government decided on Monday to prioritise domestic gas supply for homes and transport amid the current natural gas shortage.

The step comes amid ongoing tensions in West Asia and shipping disturbances. Because of this situation, India is having trouble importing liquefied natural gas (LNG) in the maximum quantity.

Indian Government Invokes Essential Commodities Act, 1955

To handle the LPG cylinder crisis, the government has invoked the Essential Commodities Act, 1955. It allows authorities to monitor the distribution of natural gas to multiple sectors.

The main objective is to ensure the sustainability of essential services and households' access to the required fuel without disruptions.

As per the new plan, the government will focus on three major areas:

PNG (Piped Natural Gas) - Necessary for household kitchens
CNG (Compressed Natural Gas) - Main use for vehicles
LPG (Liquefied Petroleum Gas) production - Commonly used for household cooking gas

These areas are very important as they are utmost need for people in India. Promising a steady supply of cooking gas and transport fuel is also a top priority for the government amid the current LPG cylinder shortage.

Industries To Receive Less Fuel Amid Gas Shortage

To put this into action, the government now wants to temporarily reduce gas supply to other sectors.

Industries like refineries, fertiliser plants, power plants, and petrochemical units will receive less gas than before.

As an example, fertiliser plants will receive only the 70% of their average gas consumption for the past six months. Whereas, industrial units will get 80% of their normal supply.

As per the requirement, there will be partial or full cuts in gas allocation for some facilities.

This step will prove helpful for key sectors such as housing and transport. According to the government, such monitored distribution is required to maintain a fair supply during the crisis.

India Relies on Imports for Nearly Half of Its Natural Gas Demand

India relies heavily on imported natural gas, consuming 190 million standard cubic metres daily, with nearly half of this supply coming from abroad.

The largest share of these imports comes mainly from Qatar and the UAE via the Strait of Hormuz, a key sea route for global trading.

Ship Movement Disturbed Due To Ongoing Geopolitical Tensions

Currently, ship movement seems disrupted due to ongoing geopolitical tensions in the region around the Strait of Hormuz for many days.

This has led to delays in LNG shipments to India, resulting in pressure on local supplies.

Indian Government Holding Talks With Canada and Australia

To manage this crucial situation, the Indian government is in talks with other countries, including Canada and Australia, to prefer another alternative to LNG supplies.

Meanwhile, several ministries, including shipping and road transport, are also holding regular discussions with industry stakeholders to manage the situation.

Reviewing the impact on prices of essential goods is also initiated by officials, since fuel shortages pose a hurdle for transportation and overall economic costs.

To meet urgent demand, Indian refiners have begun making spot purchases in global markets.

Protecting Consumers and Avoiding Shortage of Cooking Gas

According to government officials, the primary objective is to protect consumers and prevent shortages of cooking gas and fuel.

Bottom Line

By emphasising the production of LPG, PNG, and CNG, the government officials aim to ensure the smooth functioning of households and public transport during the current global energy crunch.

In short, the Indian government is rearranging gas supplies across sectors to ensure essential needs such as cooking and vehicle fuel remain available to the public despite current global supply problems.

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Frequently Asked Questions

Find answers to common questions about this topic

The government has prioritised these fuels to ensure households and transport services continue to receive essential gas during the shortage.

Global supply disruptions and tensions in key shipping routes have affected LNG shipments to India.

Industries such as refineries, fertiliser plants, petrochemical units and power plants may face temporary cuts in gas supply.

Fertiliser plants may receive about 70% of their average gas usage, while industrial units may get around 80% of their normal supply.

The government is exploring alternative LNG supplies from other countries and allowing spot purchases in global markets.