India Fortifies LPG and PNG Supplies Amid West Asia Conflict

India is stepping up its efforts to ensure uninterrupted fuel supply amid the ongoing West Asia conflict. The government is focusing on the distribution of smaller 5-kg LPG cylinders and expanding piped natural gas (PNG) connections as part of a strategic response to global energy disruptions.

Since March 23, over 13 lakh 5-kg free trade LPG cylinders have been sold, primarily benefiting migrant workers and low-income groups. Despite global interruptions, daily sales have surged past 100,000 units. Additionally, more than 424,000 new PNG connections have been established, marking a shift as over 30,000 users opt to give up traditional LPG connections.

Amid supply chain strains from the conflict, India, which relies significantly on imports from the region for LPG and other energy needs, is adjusting by sourcing crude from different regions and prioritizing domestic LPG supply over commercial users. This strategy is coupled with recent excise duty cuts on petrol and diesel to shield consumers from rising costs.