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Latest News on Economy Policy, Government, Trade Policy | The HinduBusinessLine

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West Asia conflict: Centre doubles supply of 5 kg cylinde...
By Rishi Ranjan Kala · 2026-04-07 · via Latest News on Economy Policy, Government, Trade Policy | The HinduBusinessLine
The Ministry of Petroleum & Natural Gas has doubled daily supply of 5 kg free trade LPG cylinders to states for migrant labourers.

The Ministry of Petroleum & Natural Gas has doubled daily supply of 5 kg free trade LPG cylinders to states for migrant labourers.

The Ministry of Petroleum & Natural Gas (MoPNG) has doubled the daily supply of 5 kg free trade LPG (FTL) cylinders to states for supply to migrant labourers.

The order released on Monday by the Ministry will not only help increase the supply of the critical cooking fuel to labourers, but also help raise daily sales to more than 1 lakh units.

Allocation details and guidelines

“It is conveyed that the daily quantity of 5kg FTL cylinder in each State available for disbursal to migrant labourers is being doubled based on average daily supply to migrant laborers during 2nd-3rd March 2026 beyond limit of 20 per cent mentioned in Para 2(a) of letter of March 21, 2026. These 5kg FTL cylinders will be at disposal of State Governments/ its Food/ Civil Supplies Department for supplying only to migrant labourers in their State with the assistance of OMCs,” the order said.

Earlier allocation for priority sectors

On March 21, Centre allowed additional allocation of 20 per cent commercial LPG to States on “priority basis” for 5 Kg FTL cylinders for migrant labourers as well as sectors such as restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by State or local bodies for food, community kitchens.

Rising sales and supply trends

In the last 25 days, around 79,909 tonnes of commercial LPG have been sold, which is equivalent to more than 42 lakh 19-kg cylinders. Since March 23rd, roughly 6.6 Lakh 5 Kg FTL cylinders have been sold across states.

Higher allocation helped boost the supply of the critical cooking resource for migrant labourers. For instance, around 37,000 5 Kg FTL cylinders were sold on March 25th, rising to more than 90,000 on April 4th.

Officials said that even as the LPG supply situation is “concerning,” given that the conflict in West Asia is far from over and the Strait of Hormuz (SoH) remains closed, the Centre has assured complete supply to households, hospitals, educational institutions, and migrant workers.

State coordination and distribution

On April 2nd, the states, in a meeting with Oil Secretary Neeraj Mittal, clarified that there is no disruption in LPG supply affecting migrants and that supplies remain stable. Mittal suggested that states focus on distribution in consultation with the PSU oil marketing companies (OMCs).

Awareness drives for migrant workers

Besides, PSU OMCs are also organising awareness campaigns for migrant workers. For instance, they have so far organised around 550 awareness camps in around 25 states and union territories (UTs), including Andhra Pradesh, Assam, Chhattisgarh, Delhi, Gujarat, Haryana, Jammu & Kashmir, Jharkhand, Karnataka, Keralam, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal.

More than 6,700 units of 5Kg FTL cylinders were sold in these camps.

India’s LPG dependency and imports

India is facing a tough situation with respect to LPG supplies, considering 60 per cent of its consumption comes from West Asia, with most supplies transiting the 34-km-long world’s most critical energy choke point.

India consumed more than 33 million tonnes of LPG in FY25, of which around 20..67 mt was imported. Of this, 70 per cent came from West Asia. The country’s daily requirement is around 80,000 tonnes.

According to Vortexa, the Middle East Gulf (MEG) region (excluding Iran) is India’s largest supplier of LPG, accounting for 92 per cent, or roughly 720,000 barrels per day (b/d), of the country’s imports as of 2025.

Domestic production and global sourcing

To address this, India has increased LPG production, currently around 46,000-47,000 tonnes per day. Besides, it has an assured supply of 8 lakh tonnes from various sources, including the US, Russia and Australia.

Published on April 7, 2026