What the data shows
The question on many minds is whether there is an actual LPG gas shortage in India. The government has firmly stated that there is no shortage of LPG in the country, even as reports of panic buying have surged. Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the Ministry of Petroleum & Natural Gas, emphasized, “There is no shortage of LPG at any distributorship.” This assertion comes amid rising concerns among consumers who fear they may not be able to secure their gas supplies.
Supporting the government’s claims, India’s domestic refinery production has ramped up by 40 percent, bringing daily LPG output to an impressive 50 thousand metric tonnes. Oil companies are successfully delivering over 50 lakh cylinders every day, which is a significant achievement considering the recent spike in demand. The demand for cylinders had initially surged to 89 lakh due to panic ordering but has now stabilized at around 50 lakh, indicating that the situation is returning to normal.
The Ministry of Petroleum and Natural Gas has confirmed that all retail fuel outlets across the country have sufficient supplies of LPG. Furthermore, India has enough petrol, diesel, and LPG stock for nearly 60 days, with a total storage capacity of about 74 days for crude oil and fuel. This ample supply should alleviate fears of a potential crisis.
Despite the reassurances, the backdrop of this situation is critical. India relies heavily on imports for its energy needs, meeting more than 40 percent of its crude imports and 90 percent of its LPG imports from West Asian countries. This dependency raises concerns about supply chain vulnerabilities, especially in times of geopolitical tensions or global market fluctuations.
In response to the panic buying, the government has urged citizens not to be misled by what they describe as a “deliberately mischievous, coordinated campaign of misinformation.” Officials have reiterated that every Indian refinery is operating at over 100 percent utilization, ensuring that the supply chain remains robust and responsive to consumer needs.
As of now, the LPG prices vary across major cities, with Delhi and Mumbai both seeing prices at ₹913 per cylinder, while Kolkata’s price stands at ₹942. Chennai and Bengaluru report prices of ₹929 and ₹918 respectively, and Hyderabad has the highest price at ₹955 per cylinder. These figures reflect the ongoing market dynamics but do not indicate a shortage in supply.
Looking ahead, the situation appears stable, but the government continues to monitor the market closely. The Ministry has called for calm and assured the public that there is no need to panic. However, details remain unconfirmed regarding any potential long-term impacts of the recent panic buying and how it might affect future supply and pricing.
