Government doubles 5-kg LPG cylinder quota amid Hormuz tensions

The government has doubled the daily quota of 5-kg LPG cylinders for migrant workers amid supply disruptions linked to tensions around the Strait of Hormuz. The Ministry of Petroleum and Natural Gas aims to stabilise fuel supplies with this move. Joint Secretary Sujata Sharma announced the decision via a letter dated April 6.

The Indian government has doubled the daily quota of market-priced 5-kg LPG cylinders for migrant workers to stabilise supplies amid West Asia war disruptions around the Strait of Hormuz. These cylinders, available at distributorships with just an identity card, cost ₹549 in Delhi compared to ₹913 for subsidised 14.2-kg household ones.

At a news briefing, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, stated that a letter dated April 6 doubled the daily 5-kg free trade LPG (FTL) cylinders per state for migrant labourers, based on March 2-3 averages. February saw 77,000 kg FTL cylinders sold, with higher sales on those March days. Since March 23, 7.8 lakh such cylinders were sold nationwide, including over 1.06 lakh on April 6.

Commercial LPG allocations reached 70% of pre-crisis levels, with over 4,300 raids conducted against hoarding and black marketing. Sharma urged citizens to avoid panic buying of petrol, diesel, and LPG, assuring adequate stocks and normal retail operations. Supplies of LPG and piped natural gas (PNG) were prioritised for households and hospitals.

Natural gas for priority segments like domestic PNG and transport CNG remains fully protected. Despite surging global crude prices, India cut excise duties on petrol and diesel while imposing export levies for domestic availability.

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Indian market scene with people buying induction stoves amid LPG shortage fears, PM Modi on screen assuring supplies.
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Government assures LPG supplies amid induction stove boom from shortage fears

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As fears of LPG shortages intensify due to West Asia conflict disruptions, the Indian government has assured adequate supplies and cracked down on black-marketing, while induction stove demand continues to surge following the initial rush reported earlier this week. Prime Minister Narendra Modi urged calm, promising to overcome the crisis like during Covid.

Despite the government doubling daily allocations of 5-kg LPG cylinders to stabilize supplies disrupted by the West Asia conflict, high upfront costs, low awareness, and inconsistent availability are keeping them out of reach for migrant workers and students. Of the 1,368 cylinders set aside daily, only about 50-55% are being purchased from Oil Marketing Companies.

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The Centre has raised commercial LPG allocation to states and union territories to 70% of pre-crisis levels, prioritising steel, automobiles, textiles and chemicals industries. The move comes amid supply disruptions from the West Asia war's closure of the Strait of Hormuz, enabled by higher domestic production and imports from outside the region.

The South Korean government announced on Thursday it will expand tax cuts on liquefied petroleum gas butane products from 10 percent to 25 percent starting next month through June. The measure aims to mitigate the domestic impact of international price surges due to the Middle Eastern crisis. The Fair Trade Commission plans stronger penalties for repeated collusion cases.

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As Middle East tensions disrupt gas supplies to India, causing LPG shortages and price hikes, the government's Natural Gas Regulation Order, 2026, prioritizes allocations for essential sectors like fertilizers at 70% of average consumption. This has sparked a surge in fertilizer stocks, with gains up to 17%.

Oil marketing companies hiked commercial LPG cylinder prices by ₹993 on May 1, 2026. Prices of aviation turbine fuel for domestic carriers remained unchanged, while ATF for international airlines rose by $76.55 per kilolitre. Bulk diesel prices increased from ₹137 to ₹149 per litre.

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Energy and Mineral Resources Minister Bahlil Lahadalia affirmed that the government will not raise prices of subsidized fuel oil (BBM) and LPG amid the Middle East geopolitical crisis. The statement came after opening the XI Regional Conference of Golkar Party in North Sulawesi in Manado on April 11, 2026. National stocks of BBM and LPG are secure for days ahead.

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