‘No Need to Panic Book LPG,’ Says Government of India as Production Rises 30%

India has seen a sharp surge in cooking gas bookings amid panic buying triggered by the ongoing conflict involving Iran, Israel and the United States, prompting the government to urge people not to rush into LPG bookings.

The Centre said domestic LPG production has been increased by about 30% and the entire supply is currently being directed towards household consumers to ensure adequate availability. Despite this, daily LPG bookings have risen significantly to 75.7 lakh cylinders, compared with an average of 55.7 lakh before the conflict began, indicating panic buying, said Sujata Sharma, Joint Secretary in the petroleum ministry.

“I want to appeal to people that there should be no rumour mongering and there is absolutely no need to panic,” Sharma said.

Hormuz Route Disruptions

India earlier met around 60% of its LPG demand through imports, with nearly 90% of those shipments passing through the strategic Strait of Hormuz.

The narrow waterway — about 50 miles wide and connecting the Gulf to the Arabian Sea — carries roughly a fifth of the world’s oil and LPG shipments. However, tanker movements through the route have been disrupted amid the conflict, with several vessels reportedly attacked since the hostilities began.

In response, the government has directed an increase in domestic production. It has also set up a committee to monitor the LPG situation and prepare contingency plans, including diversion strategies if needed.

Crude Oil Supply Stable

Officials also said there is no immediate concern over crude oil availability. According to Sharma, India now imports crude oil from about 40 countries, and current inflows exceed the country’s daily requirement of around 5.5 million barrels. Meanwhile, Iran has dismissed reports suggesting it had allowed India-flagged tankers to pass safely through the Strait of Hormuz.