The government of India has asked city gas distribution (CGD) companies to prioritise piped natural gas (PNG) connections for commercial establishments, and has also taken several steps to ensure stable fuel supplies as conflict in West Asia continues to impact energy flows.
In an update released on Saturday, the Ministry of Petroleum and Natural Gas said, “City Gas Distribution (CGD) entities have been advised by govt. of India to prioritise PNG connections for commercial establishments such as restaurants, hotels and canteens across all their Gas, to address concerns regarding the availability of commercial LPG.”
The ministry added that the government has also asked ministries and state governments to speed up approvals related to gas infrastructure.It said, “govt. of India vide letter dated 19.03.2026 have requested all concerned Central government Ministries to issue necessary directions… for immediate fast tracking and disposal of all pending and new permissions related to CGD infrastructure.”
The government has also encouraged government offices and establishments to move towards PNG usage where possible.”All Central government establishments/Colonies/Officers/Canteens may also be advised to switch over to PNG wherever the same is available,” the ministry said.
To support commercial users, the government has increased the allocation of commercial LPG cylinders. According to the ministry, “govt. of India vide letter dated 21.03.2026 has allowed another 20 per cent allocation of commercial LPG to States, which would take overall allocation to 50%.”
“This additional 20% allocation shall be given on priority to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by State govt. or local bodies for food, community kitchens, 5 Kg FTL for migrant labourers,” the ministry added.
It also noted that the government has stepped up monitoring to prevent black marketing and hoarding of LPG cylinders. “Raids continue to be carried out in many of the States/UTs to check the hoardings and black marketing of LPG. More than 3,500 raids have been conducted, and around 1400 cylinders have been seized in Uttar Pradesh, Telangana, Maharashtra etc.,” the ministry said.
The ministry also stated that “All refineries are operating at high capacity, with adequate crude inventories in place,” adding that “the country is also maintaining sufficient stocks of petrol and diesel.” It also reassured the public that there are no fuel shortages at retail outlets (ROs).
“No cases of fuel dry outs have been reported at any of the ROs by the Oil Marketing Companies,” the ministry said, while advising people “not to resort to panic buying”.
The development comes amid the escalating tensions and conflict that began on February 28 with the killing of 86-year-old Iran’s Supreme Leader, Ayatollah Ali Khamenei, in joint military strikes by the US and Israel, after which Iran, in its retaliation, targeted US assets in several Gulf countries and Israel, causing disruption in the waterways and affecting international energy markets and global economic stability. Due to the conflict in the region, Iran has virtually closed the Strait of Hormuz, a critical transit route for global energy supply.
Published on March 22, 2026
