Petrol, Diesel, LPG Crisis Highlights: Uttarakhand cites reason for ‘backlog’; Rajnath Singh to hold key meeting

A total of 27 LPG cylinders, including five filled ones, were stolen from a delivery vehicle in a western suburb of Mumbai, prompting the police to launch a probe, an official said on Saturday, news agency PTI reported.

The theft at Charkop in Kandivali (West) comes amid allegations of supply disruptions due to the ongoing conflict in West Asia, he said.

A Roundtable Review Meeting on “Expansion of Piped Natural Gas (PNG) Services and Maintaining Essential Services” in urban areas was held today at Vigyan Bhavan, bringing together key stakeholders to deliberate on accelerating PNG network expansion across urban India and ensuring uninterrupted delivery of essential services.

A detailed presentation by the Ministry of Petroleum and Natural Gas outlined the current status of PNG rollout, emphasising its advantages over LPG in terms of safety, reliability, affordability and environmental sustainability. Key challenges identified included delays in municipal permissions, Right of Way (RoW) approvals and high restoration charges, which continue to impede timely network expansion.

Deliberations during the roundtable highlighted several best practices, including fast-tracking of road-cutting permissions and adoption of deemed approval mechanisms to expedite project implementation. However, concerns were raised regarding high RoW charges and procedural delays. Participants stressed the need for rationalisation or temporary waiver of such charges and adoption of single-window, time-bound clearance systems.

Indian Oil posted on X: "Indian Oil is ensuring uninterrupted LPG supply to genuine domestic customers. Refills are being delivered at home, and DAC (Delivery Authentication Code) provision is available for delivery confirmation. Indane distributors have been advised to make deliveries after obtaining this code.

Anand Swaroop, Secretary of the Food, Civil Supplies, and Consumer Affairs Department of Uttarakhand, says, "...There is no shortage of petroleum and diesel, CNG here. Currently, regarding domestic gas as well, I have been informed that the availability is sufficient. Due to panic booking, a backlog had occurred, which is being gradually reduced. Currently, it is also decreasing... Restrictions were imposed by the Government of India regarding business connections. Currently, relaxation has been given in that as well..."

PM Narendra Modi spoke with Crown Prince and PM of Saudi Arabia, HRH Prince Mohammed bin Salman and discussed the ongoing conflict in West Asia.

PM Modi tweeted, "I reiterated India’s condemnation of attacks on regional energy infrastructure. We agreed on the need to ensure freedom of navigation and keeping shipping lines open and secure. Thanked him for his continued support for the welfare of the Indian community in Saudi Arabia."

A high-level review meeting was held under the chairmanship of Chief Secretary Anand Bardhan to ensure uninterrupted supply of gas, fuel, and other essential commodities in the state in view of the current global situation.

The meeting included detailed discussions on key issues such as the availability of domestic and commercial gas, requirements of hospitals, educational institutions, and industries, the anticipated surge in demand during the upcoming Char Dham Yatra, the status of fertilizers, expansion of PNG pipelines, CNG supply, measures to curb black marketing and hoarding, rumor management, and the promotion of alternative energy sources.

On PM Modi's meeting over Gulf Crisis, Congress MP Imran Masood says, "…Earlier they were saying Modi ji will handle everything, but it seems Modi ji is unable to deliver. Now, he is unable to do it alone. It's good that at least the thought of ‘Team India’ has crossed their mind."

Long queues were witnessed in Mumbai's Lower Parel area as people stood in lines to buy gas cylinders witnessed.

According to the Government of India, "The situation is comfortable with respect to LPG and PNG as well. Our refineries are operating at full or even above capacity, and domestic LPG production has increased by almost 40%... Since India has a high import dependency—about 90% of LPG imports came through the Strait of Hormuz—the government decided to prioritise domestic consumers over commercial supply."

According to the Government of India, "The situation is comfortable with respect to LPG and PNG as well. Our refineries are operating at full or even above capacity, and domestic LPG production has increased by almost 40%... Since India has a high import dependency—about 90% of LPG imports came through the Strait of Hormuz—the government decided to prioritise domestic consumers over commercial supply."

Congress leader Pawan Khera says, "...If there is no problem, then why should there be black marketing on cylinders?...A lot of hotels and dhabas have stopped making a lot of things. They don't cook. They are on the verge of closing down because they don't have LPG supply. So, there is a problem with commercial LPG as well as domestic LPG...I am told that the PM has finally decided to campaign. He should step out and see what is happening. The reality cannot be seen, felt or understood sitting in Delhi."

Hindustan Petroleum Corporation Limited said that India's energy supply remains secure and stable, assuring citizens that petrol, diesel and LPG are available normally across the country.

In a post on X, the HPCL said, "India's energy supply remains secure and stable. There is no shortage of petrol, diesel, or LPG, and all fuel stations are operating normally."

Two Indian LPG vessels have reached Gujarat's Vadinar Terminal via Hormuz Strait.

The vessel, MT Jag Vasant, is set to transfer its cargo to another ship at anchorage through a Ship-to-Ship (STS) operation.

Indian Navy warships were on standby to provide support to the merchant vessels, sources told ANI.

Meanwhile, more vessels are expected to follow soon, the sources added.

MT Jag Vasant arrives at DPA Kandla's Vadinar Terminal in Jamnagar, Gujarat. It was carrying 47,000 MT of LPG, set for ship-to-ship (STS) transfer at anchorage.

Elevated global energy prices amid West Asia conflict could put pressure on India's fiscal position in FY27, though available buffers are likely to help manage the impact, according to a report by ICRA.

The report noted that "elevated global crude oil and natural gas prices amid ongoing developments in West Asia may influence the Government of India's fiscal position for FY2026-27."

It highlighted that recent increases in energy prices, driven by geopolitical factors, have introduced volatility in global markets and may necessitate fiscal recalibration, ANI reported.

"Even if the situation stabilises, energy prices are expected to remain higher than earlier budgeted assumptions, which may require fiscal adjustments," the report said.

Additional allocation shall be given to industries with priority to steel, automobile, textile, dye, chemicals, and plastics, which are labour-intensive and provide support to other essential sectors.

Among these, priority shall be given to process industries or those requiring LPG for specialised heating purposes that cannot be substituted by Natural Gas, according to ANI.

Union Finance Minister Nirmala Sitharaman hailed the government's move of slashing excise duty on petrol and diesel, noting that the reduction would ensure that the public is not burdened by the shortage of LPG or fuel.

“The way the PM responds to such situations, in this case to ensure that the public is not burdened by shortage of LPG or fuel, the PM said that the price for consumers should not be increased. In view of this, we took this decision to ensure that OMCs do not stop buying crude oil so that there is no shortage of fuel in the country...We have raised the excise duty on export of ATF to ensure its availability in the country,” FM Sitharaman told ANI.

Commenting on the government’s move to cut excise duty on petrol and diesel, Petroleum and Natural Gas Minister Hardeep Singh Puri said that unlike many countries which have enforced strict fuel-saving measures and raised prices, India has focused on keeping fuel affordable while ensuring a stable supply.

"When rest of the world has been taking drastic fuel conservation measures such as odd-even, 4 day work weeks, school and office closures and increasing fuel prices by 20-30%, India under PM Narendra Modi Ji remains an oasis of energy security, availability and affordability," Puri said in a post on X.

"Taking a further step to ease supply of commercial LPG, Government of India has decided to increase the commercial LPG allocation of states to 70%, with 20% allocation given to industries such as steel, automobile, textile and other labour intensive industries. Priority will be given to those industries where piped gas is not a substitute," he added.

Petrol and diesel rate in India have remained stable despite geopolitical uncertainty in energy-producing regions of the Middle East due to ongoing Iran conflict with US and Israel.

This has happened because of a calibrated “shock absorber” system where oil marketing companies and the government smooth out global volatility, which in turn protects consumers in the short term, but not without trade-offs, Mint reported.