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Chandigarh: India’s LPG supply crunch continued for the third consecutive week on Friday, with early signs of easing demand as panic bookings declined. However, Punjab and Haryana continue to face tight supplies, especially for commercial consumers, amid disruptions triggered by the West Asia conflict. The crisis follows the closure of the Strait of Hormuz, a key energy route through which India imports nearly 60 per cent of its oil and gas supplies.

Punjab, Haryana: Commercial Supply Hit, Domestic Priority

Officials said that in Punjab and Haryana, LPG supplies are being prioritised for domestic households, while commercial users such as hotels, dhabas and eateries are receiving only about 20 per cent of their requirement.

Industry sources in the region said several small hotels and roadside establishments have either scaled down operations or temporarily switched to alternate fuels due to restricted supply. In both states, no complete stock-out has been reported at LPG distributorships, but refill cycles have stretched in some districts due to high demand.

Panic Booking Declines

The uncertainty had triggered panic among domestic users, pushing bookings to 87.7 lakh on March 13 nationwide. However, the situation is now stabilising. According to Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, bookings have dropped to around 55 lakh on March 19, close to the pre-crisis daily average of 50–55 lakh. “Panic booking is coming down,” Sharma said, though she added that the situation remains “worrisome”.

Supply and Production Measures

To stabilise supply, the government has ramped up domestic LPG production by over 40 per cent in the past two weeks, while public sector oil marketing companies are maintaining pre-war levels of daily cylinder deliveries. In the last week, about 11,300 tonnes of commercial LPG have been supplied across the country, including allocations to states based on priority.

Enforcement Drives in Punjab, Haryana

To curb hoarding and black marketing, enforcement has been intensified across states, including Punjab and Haryana.

• 4,500 raids were conducted nationwide on Friday

• Oil companies carried out 1,800 surprise inspections of petrol pumps and LPG distributors.

Officials said state authorities in Punjab and Haryana have been asked to increase monitoring, particularly in urban clusters where demand from commercial establishments is high.

Push for PNG and Alternate Fuels

The government is also encouraging a shift to piped natural gas (PNG) in cities with gas networks. In 15 geographical areas, about 13,700 PNG connections have been issued so far, with 7,000 consumers switching from LPG. In Punjab and Haryana, urban centres like Ludhiana, Amritsar, Chandigarh, Gurugram and Faridabad are seeing increased push for PNG adoption to reduce dependence on LPG. Authorities are also promoting alternative fuels such as kerosene for commercial users.

Situation Remains Tight

Officials said that while domestic LPG delivery remains largely normal, supply pressures persist due to global disruptions. Consumers have been advised to avoid panic booking and wait for scheduled home delivery, as the government continues to prioritise household consumption.“Situation is still worrisome, but we are maintaining supplies at a normal level for domestic users,” Sharma said.