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Government Invokes ESMA Amid LPG Shortage, Priority Supply For Domestic And Essential Sectors

The government has directed refineries to increase LPG production and prioritise domestic cylinders while introducing a 25-day booking rule to prevent shortages and hoarding.

Staff Reporter by Staff Reporter
March 10, 2026
in Nation
Reading Time: 2 mins read
Bihar Halts New LPG Connections As Supply Pressures Mount
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New Delhi: The central government has directed oil refineries to increase the production of liquefied petroleum gas (LPG) and prioritise the supply of domestic cylinders in response to concerns about potential shortages.

Officials said the order was issued as part of a series of measures aimed at maintaining stable supplies of cooking gas across the country.

Under the directive, refineries have been instructed to increase LPG output and ensure that domestic cylinders receive priority over commercial cylinders.

Authorities have also specified sectors that must receive uninterrupted supplies, stating that there should be no shortage in essential services.

These sectors include piped natural gas (PNG), compressed natural gas (CNG), LPG distribution networks and other pipeline-based services.

According to the order, fertiliser plants will receive at least 70% of their existing gas allocation, while the tea industry, manufacturing units and other industrial establishments will continue to receive up to 80% of their usual supply.

Gas distribution companies have been instructed to maintain around 80% of their supply for commercial and industrial use while ensuring domestic LPG availability remains unaffected.

Officials said strict monitoring would be carried out to ensure smooth supply from production to transportation and distribution.

The government has also reintroduced a 25-day interval rule for booking domestic LPG cylinders. Under this rule, consumers who have already purchased a cylinder will be able to book the next refill only after 25 days.

The restriction had previously been relaxed but has now been reinstated to prevent hoarding and reduce the risk of black marketing.

Officials said the measure is intended to discourage stockpiling by consumers, which could otherwise create artificial shortages and trigger panic buying.

The government’s move comes amid concerns over disruptions in global energy markets linked to tensions in the Middle East, including the ongoing conflict involving Iran.

Authorities said the steps are precautionary and aimed at ensuring that domestic consumers do not face shortages.

Officials added that global supply chains may stabilise if the geopolitical situation improves, which could ease pressure on LPG availability in the coming weeks.

Tags: compressed natural gas (CNG)Israel Iran WarLPG CylinderPiped Natural Gas (PNG)

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