In recent days, the city of Indore, India, has witnessed a surge in panic buying of petrol, driven by rumors suggesting a potential shortage. This situation arose just before March 25, 2023, when residents began flocking to petrol stations, fearing they might run out of fuel. The sudden rush led to some petrol pumps experiencing short-term dry-outs, although these were attributed to delayed tanker arrivals rather than an actual shortage of fuel.

On March 25, 2023, the prices of petrol and diesel remained unchanged, with petrol priced at ₹94.77 per litre and diesel at ₹87.67 per litre in New Delhi. Despite geopolitical uncertainties affecting energy-producing regions, the government has assured citizens that there is no shortage of essential fuels across the country. Oil refineries are operating at high capacity, and adequate stocks of petrol and diesel are available.

Officials from the district administration have been proactive in addressing the concerns of the public. M L Maru, the district supply controller, stated, “There is sufficient stock available and petrol pumps will continue to receive supplies.” This reassurance was crucial in calming the fears of motorists who had rushed to fill their tanks amidst the chaos.

Rajendra Wasu, president of the Indore petrol dealers’ association, also confirmed that the panic was largely unfounded. He explained, “There was some delay in supply from a depot of one oil company which created panic in the evening. But there is no shortage of fuel.” This statement reflects the reality of the situation, where temporary supply delays were misinterpreted as a broader crisis.

In Indore district alone, daily consumption is estimated at around 10 lakh litres of petrol and about 15 lakh litres of diesel. With approximately 275 fuel stations in the district and around 5,500 across Madhya Pradesh, the infrastructure is in place to meet the demands of the public. Additionally, nearby Ujjain, which has around 150 petrol pumps, reported adequate stocks of about 16,000 KL of petrol and 25,000 KL of diesel.

Despite the assurances from officials, the impact of rumors can be significant. Commuters like Rohit Sharma and Anjali Jain expressed their concerns, with Sharma stating, “I saw messages saying petrol pumps might run dry, so I came to fill fuel,” while Jain noted, “Everyone suddenly came to fill petrol because of the rumours.” This highlights how misinformation can lead to unnecessary panic and disrupt normal operations.

As of now, the situation appears to be stabilizing, with district administrations continuing to monitor the fuel supply closely. They have reiterated that there is no shortage of petrol, diesel, or cooking gas, aiming to restore confidence among the public. The government’s commitment to maintaining fuel supplies is essential, especially in the face of potential future disruptions.

In summary, while the panic buying in Indore was fueled by rumors, the reality is that there is sufficient petrol and diesel available. The government and local authorities are working to ensure that supplies remain stable, and they encourage citizens to remain calm. Details remain unconfirmed regarding any future supply issues, but for now, the situation is under control.

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The ministry has prioritised domestic LPG supply to households and introduced a 25 day inter-booking period to avoid hoarding/black marketing. This statement from the Ministry of Petroleum and Natural Gas highlights the urgency of the situation as the government responds to ongoing supply disruptions and rising demand for liquefied petroleum gas (LPG) in the domestic market.

In recent weeks, the conflict in West Asia has significantly impacted the global fuel supply chain, prompting the government to issue orders for oil refineries to ramp up LPG production. The Ministry has emphasized that ensuring a steady supply of LPG to households is a top priority, especially as many families rely on it for cooking and heating.

Measures to Combat Hoarding and Black Marketing

To mitigate the risks of hoarding and black marketing, a 25-day inter-booking period has been introduced for LPG refills. This measure aims to create a more organized distribution system and ensure that households receive their supplies in a timely manner. The government hopes that this will alleviate some of the pressure on the supply chain and prevent shortages.

In addition to prioritizing household needs, the government has also directed that non-domestic supplies from imported LPG be allocated primarily to essential sectors such as hospitals and educational institutions. This decision underscores the importance of maintaining critical services during times of supply uncertainty.

Impact on Commercial LPG Supply

However, the situation remains challenging for commercial users. Reports indicate that the supply of commercial LPG cylinders has been completely halted, significantly affecting hotels and restaurants. P C Rao, a representative from the hospitality sector, noted, “Only about 10% of hotels and restaurants in Bengaluru received their LPG supply today.” This disruption has raised concerns about the operational viability of many businesses that depend on LPG for cooking and heating.

In Mumbai, residents are experiencing refill delays ranging from 2 to 8 days, adding to the frustrations of households that rely on timely deliveries. The delays have been attributed to the ongoing disruptions in the supply chain, further exacerbated by the geopolitical tensions affecting fuel availability.

Committee Formed to Review LPG Supply Requests

In response to the growing concerns over LPG supply, a committee consisting of three Executive Directors from Oil Marketing Companies has been established. This committee is tasked with reviewing LPG supply requests from non-domestic sectors, aiming to streamline the process and ensure that essential services receive the necessary fuel.

As the government continues to navigate these challenges, the focus remains on stabilizing the LPG supply for households and essential services. While measures have been implemented, the situation is fluid, and further developments are expected as the government monitors the supply chain closely.

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The ministry has prioritised domestic LPG supply to households and introduced a 25-day inter-booking period to avoid hoarding and black marketing. This statement from the Ministry of Petroleum and Natural Gas highlights the current challenges facing the LPG sector in light of increasing demand and supply disruptions.

In response to the ongoing geopolitical tensions affecting fuel supply chains, the government has ordered oil refineries to ramp up LPG production specifically for domestic use. This directive comes at a time when refill delays of 2 to 8 days have been reported in major cities like Mumbai, causing significant inconvenience to consumers.

The Ministry has made it clear that ensuring a steady supply of LPG to households is a top priority. To facilitate this, a new 25-day inter-booking period has been implemented, aimed at curbing hoarding and black marketing practices that have emerged in recent weeks. This measure is expected to stabilize the market and ensure that households have access to the fuel they need.

Moreover, the supply of commercial LPG cylinders has been completely halted, which has severely impacted hotels and restaurants across the country. In Bengaluru, for instance, only about 10% of hotels and restaurants received their LPG supply on a recent day, underscoring the extent of the disruption.

To address the needs of essential sectors, such as hospitals and educational institutions, non-domestic supplies from imported LPG are being prioritized. A committee of three Executive Directors from Oil Marketing Companies has been established to review LPG supply requests from these non-domestic sectors, ensuring that critical services are not adversely affected.

The current situation is a direct result of the ongoing conflict in West Asia, which has led to increased orders for LPG production. The government is taking proactive steps to manage the supply chain and mitigate the impact of these external factors on domestic consumers.

As the situation evolves, the government remains committed to monitoring LPG supply and production closely. Further announcements are expected as the authorities continue to navigate the complexities of the current fuel supply landscape.

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Issuance of the Natural Gas Supply Regulation Order

On March 9, 2026, the Central Government issued the Natural Gas (Supply Regulation) Order, 2026, under the Essential Commodities Act of 1955. This regulation is designed to manage the supply of natural gas in light of the disruptions caused by the conflict in West Asia, which has affected liquefied natural gas (LNG) shipments through critical routes such as the Strait of Hormuz.

Prioritization of Gas Supply

The regulation establishes a tiered priority system for gas distribution. Priority Sector I includes domestic piped natural gas (PNG), compressed natural gas (CNG), LPG production, and essential pipeline operational needs, which will receive 100% of their average gas consumption. Priority Sector II, which encompasses fertilizer plants, is allocated 70% of their average gas consumption to ensure continued production.

Impact on Industrial Consumers

Priority Sector III, which includes tea industries and other industrial consumers connected to the national gas grid, will receive 80% of their average consumption. Similarly, Priority Sector IV applies to industrial and commercial consumers supplied through City Gas Distribution (CGD) networks, also receiving 80% of their average consumption. This structured approach aims to safeguard essential services and industries during the ongoing crisis.

Adjustments for Non-Priority Sectors

To accommodate the needs of these priority sectors, gas supplies may be curtailed from non-priority sectors. Notably, oil refineries have been directed to reduce their gas consumption to approximately 65% of their average over the past six months. This reduction is part of the government’s broader strategy to manage limited resources effectively.

Management and Compliance

GAIL has been appointed to oversee the diversion and redistribution of natural gas under the newly issued order. Furthermore, all entities involved in natural gas production, importation, and distribution are required to furnish detailed information regarding their operations to the Petroleum Planning and Analysis Cell. This includes data on production, imports, stocks, allocation, and consumption.

Significance of the Regulation

The issuance of the Natural Gas Supply Regulation Order is a critical step for the Indian government in ensuring energy security for its citizens amid ongoing uncertainty in the global oil and energy markets. As noted by government officials, “The order aims to ensure equitable distribution of gas after Liquefied Natural Gas (LNG) shipment disruptions.” This regulation not only addresses immediate supply concerns but also reflects the government’s commitment to prioritizing essential services during times of crisis.

As the situation continues to evolve, the government’s proactive measures in regulating gas supply will play a vital role in maintaining stability within the energy sector. The prioritization of gas for essential services underscores the importance of strategic resource management in the face of global disruptions.

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The ministry has prioritised domestic LPG supply to households and introduced a 25 day inter-booking period to avoid hoarding/black marketing. This statement from the Ministry of Petroleum and Natural Gas highlights the urgency of the situation as the government seeks to address the growing challenges in LPG production and distribution.

In recent weeks, the conflict in West Asia has significantly impacted the global fuel supply chain, prompting the government to order oil refineries to ramp up LPG production for domestic use. This move is aimed at ensuring that households have access to this essential energy source amidst rising demand and supply disruptions.

Current Supply Challenges

The situation in Mumbai exemplifies the challenges faced by consumers, with reports indicating that LPG refill delays range from 2 to 8 days. Such delays have raised concerns among residents who rely on LPG for cooking and heating. The government has recognized these issues and is taking steps to mitigate the impact on households.

Additionally, the supply of commercial LPG cylinders has been completely halted, affecting businesses such as hotels and restaurants. P C Rao, a representative from the hospitality sector, noted, “Only about 10% of hotels and restaurants in Bengaluru received their LPG supply today.” This disruption not only impacts the food service industry but also raises questions about the overall economic implications of the LPG supply chain issues.

Measures to Ensure Fair Distribution