Gas Supply To Fertiliser Sector Increased To 90% As LPG Cargoes Reach India Via Hormuz

Last Updated:April 07, 2026, 09:38 IST

Petroleum Ministry said there is sufficient stock of 5 kg free trade LPG cylinders, widely used by students and migrant workers.

The Central Government has increased gas allocation for the fertiliser sector to 90% as India prepares to receive over 62,000 tonnes of liquefied petroleum gas (LPG) this week. The move comes as Iran continues to allow passage through the Strait of Hormuz for “friendly" countries like India amid the ongoing war with the US and Israel.

LPG supply amid ongoing West Asia conflict

Government officials said two LPG cargoes are scheduled to arrive, helping oil companies meet fuel demand from more than 332 million households despite supply pressures caused by the West Asia conflict.

Two vessels – Green Sanvi carrying 46,500 tonnes and Green Asha with 15,500 tonnes – have successfully crossed the Strait of Hormuz, officials said during an inter-ministerial briefing.

From Monday, gas allocation for fertiliser plants has been raised from around 70% to 90%. Officials said this supply will come from domestically produced natural gas, which serves both as fuel and raw material for fertiliser production.

India steps up to secure energy supplies

Officials said state-run oil marketing companies are sourcing crude oil, LPG and liquefied natural gas from all available routes to maintain supply.

Sujata Sharma, joint secretary in the petroleum ministry, said LPG availability remains tight but domestic supply is stable. “We have tied up additional cargos," she said.

After the war began on February 28, Indian refiners and petrochemical units were directed to maximise LPG output, increasing domestic production by 40%.

Imports and supply disruptions

India imports 60% of its LPG needs, with 90% sourced from West Asia, especially Qatar. Supplies were disrupted after Iran struck Qatar’s Ras Laffan industrial city in mid-March, along with continued navigation challenges in the Strait of Hormuz.

Despite this, Sharma said there has been no shortage at distribution points. Around 50 lakh cylinders are being supplied daily, reaching nearly 18 crore households over the past five weeks.

Monitoring and distribution measures

Authorities are closely monitoring supply and taking action against black-marketing and hoarding. Sharma said 97% of refill bookings are now online, and 90% of deliveries use a delivery activation code to prevent diversion.

Commercial Supply Still Restricted

Gas supply to commercial users such as hotels, restaurants and hostels remains capped at 70% of demand, as households are prioritised. In the past three weeks, about 79,900 tonnes of commercial LPG were sold, equivalent to around 42 lakh 19-kg cylinders.

Availability of 5 kg cylinders

Sharma said there is sufficient stock of 5 kg free trade LPG cylinders, widely used by students and migrant workers. Consumers can purchase them with a valid ID, without address proof.

More than 5,500 awareness camps have been held, where about 6,700 cylinders were sold. In the past 14 days, over 6.75 lakh refills were distributed nationwide.

Daily sales of these cylinders rose from around 77,000 in February to over 90,000 on April 4. These cylinders are priced at Rs 549 per refill in Delhi.

Natural gas supply priority

Priority for natural gas supply remains with domestic consumers using piped gas and vehicles running on compressed natural gas. After meeting these needs fully, remaining supplies are allocated to industrial and commercial users.

Fertiliser plants, which were earlier receiving 70–75% of their gas requirements, are now getting 90% from Monday.

Indian ships crossing Hormuz

So far, seven Indian-flagged LPG tankers have crossed the Strait of Hormuz since disruptions began. Even after the latest transit by Green Sanvi, 17 Indian vessels remain stranded on the western side of the strait.

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