The Union government has barred consumers with piped natural gas (PNG) connections from retaining, obtaining or refilling domestic liquefied petroleum gas (LPG) cylinders under an amended supply order. The amendment also prohibits government oil companies from providing LPG connections or refills to consumers who already have PNG connections. The change was notified by the Ministry of Petroleum and Natural Gas and took effect amid acute supply concerns.

The restriction follows disruptions to LPG supplies arising from the West Asia conflict and an effective blockade of the Strait of Hormuz by Iran that has affected commercial navigation. About 20 per cent of global petroleum supply passes through the maritime chokepoint and India imports about 60 per cent of its LPG demand, most of it from Gulf countries. The disruption has led to temporary closures of some eateries and long queues outside fuel godowns and distribution agencies.

The ministry characterised the supply situation as a matter of concern while maintaining that no distributor had reported a complete stock outage among 25,000 distributors nationwide. Officials urged citizens to avoid rumours and refrain from panic buying and advised consumers who are able to shift from LPG to PNG to do so without delay. The ministry estimated that six million (6 mn) households could make the shift to piped supply, and it indicated that adjustments to allocations and logistics were being prioritised.

The notification is intended as a short term demand management measure while the government continues to monitor imports and supply chains and engages with suppliers. Analysts warned that the measure could ease immediate pressure on cylinder supplies but that longer term stability will depend on reductions in transit risk and diversified sourcing. Authorities said further steps would be announced if the situation deteriorates.