India securing LPG supplies from US firms, Adnoc, others amid gas import concerns: Govt source

Petrol and diesel prices in India are unlikely to increase, unless and until crude oil prices breach $130 per barrel, government sources said.

India is securing liquefied petroleum gas (LPG) supplies from the international portfolios of global companies, including UAE’s Adnoc (Abu Dhabi National Oil Company), Sonatrach, Algeria’s state-run oil and gas company, and others amid the war between US, Israel and Iran, a top government source aware of the development told Moneycontrol.

The central government has also issued an order today to hike the LPG production by adjusting the product mix. “We are doubling down on our efforts to increase our sourcing of LPG from alternate sources,” the official said on the condition of anonymity.

The official revealed that deliveries of LPG from Australia, Algeria, Canada and the US are in progress.

The escalating tensions in the Middle East have not only put India’s crude oil supplies at risk but have also pressured the country’s LPG flows, with 80–85% of its LPG needs, with the majority sourced from Gulf suppliers, almost entirely transiting via the Strait of Hormuz.

Meanwhile, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri told reporters that uninterrupted energy imports are flowing into India from routes that are not impacted by the conflict and the government is taking all necessary steps to ensure availability of energy to the citizens.

To safeguard domestic supplies, the government invoking the emergency powers under the Essential Commodities Act, 1955, has directed Indian refiners to maximise their output of LPG asking public sector oil marketing companies to ensure that LPG so procured is marketed solely to consumers of domestic LPG. This will also include diversion of LPG from commercial use to domestic, sources confirmed.

Indian refiners are in the global market scouting for more LPG and LNG supplies, sources said.

Further, to prevent hoarding of cooking gas cylinders, India refiners have increased the lock-in period (waiting period after which a household can again buy a cylinder) to 25 days from 15 days earlier, sources told Moneycontrol.

Sources in the government also said that they do not see city gas domestic companies raising prices for piped natural gas (PNG) used for domestic purposes and compressed natural gas (CNG) used in transport sector for now.

“All parts of the government are working in a united way. India is better placed than most countries in the world,” the source said, adding that the country presently has enough aviation turbine fuel (ATF) stocks.

Analysts also noted that while India’s crude flows can be buffered through strategic petroleum reserves, commercial stocks, and Russian optionality, LPG, however, has thinner structural buffers. Unlike crude, LPG sourcing flexibility is limited, making the potential impact more acute, they say.

As per data from the Petroleum Planning and Analysis Cell, the country imported 18.79 million metric tonnes of LPG during April-January of FY26 against 17.2 million tonnes imported during the same period of the previous fiscal. The country’s LPG consumption stood at 28 million tonnes during the period compared to 31.3 million tonnes in FY25.