What changed
2026-08-10 12:22 UTC → 2026-08-16 08:13 UTC ·
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In early May 2026 the Indian government stepped up enforcement against LPG hoarding, conducting nearly 2,000 raids By August 2026, India continued its efforts to diversify energy sources and keeping bolster domestic supply uninterrupted. A week later, oil firms warned consumers of OTP‑based scams targeting LPG deliveries and census services. By late May supply. On 1 August, the central government eased LPG rules for households that had switched to piped natural gas (PNG), allowing a 30‑day surrender window or a transfer voucher. June saw introduced a series of price adjustments. On 1 June commercial reduction for 5-kg LPG cylinders rose by up to ₹42, while domestic cylinder prices were left unchanged. A second domestic hike on 7 June added ₹29 per cylinder, marking under the second increase in three months and prompting criticism from opposition leaders. The government simultaneously reduced Free Trade LPG (FTL) scheme, setting the annual Ujjwala subsidy quota from nine to four cylinders to curb fiscal pressure. Amid price at ₹762. This makes the West‑Asia conflict, India pivoted its import basket, boosting U.S. LPG shipments to over 40% of total imports and expanding LNG and crude sources to more mini-cylinder ₹180 cheaper than 40 countries. Strategic‑reserve reports highlighted a short 9‑10‑day crude buffer, prompting calls for greater storage. Late June the government lifted all commercial standard 14.2-kg domestic cylinder, which remains priced at ₹942 in Delhi. This move comes as overall LPG restrictions, restoring bulk supplies consumption has fallen 17.4% due to pre‑crisis levels, and clarified misinformation about a blanket LPG shutdown. By early July commercial cylinder prices were cut by up to ₹184, while domestic rates held steady. By August, Petroleum Minister Hardeep Singh Puri reported that the United States had become India’s largest LPG supplier, accounting for approximately 67% of imports. This household shift was driven by global energy market strains from the Russia‑Ukraine conflict and West Asia tensions. toward piped natural gas. To further mitigate supply geopolitical and maritime transit risks, India expanded its the Ministry of Petroleum and Natural Gas confirmed that LNG sourcing has expanded from six to 15 countries and widened countries, while crude oil sourcing has grown from 27 to 41 countries. To further enhance energy security, the government has established maximum LPG production targets for 21 refineries and upstream companies. These targets, which include 18,000 tonnes per day for Reliance Industries’ Jamnagar refinery, aim to leverage a combined potential of 63,810 tonnes per day during supply constraints. This is critical given that in the 2025-26 financial year, imports accounted for 21.3 million tonnes of the 33.2 million tonnes consumed daily. Efforts to increase strategic petroleum storage are also underway. Indian Strategic Petroleum Reserve Limited has established facilities in Andhra Pradesh and Karnataka with a 5.33 million metric tonne capacity, while the Oil and Natural Gas Corporation is developing an additional 1.75 million metric tonne facility in Karnataka.