Centre sets up panel with OMCs to prioritise LPG supply for non-domestic use

The Centre Wednesday formed a three-member committee comprising members of leading oil marketing companies (OMCs) to review representation and prioritise supply of LPG (Liquified Petroleum Gas) for non-domestic use.

The committee members include executive directors - K Sailendra of Indian Oil Corporation, T V Pandiyan of Bharat Petroleum Corporation and Dhruv Kapil of Hindustan Petroleum Corporation.

“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has taken the step for higher LPG production and securing it for supplying to domestic customers. Along with ensuring supplies to all domestic customers, it has been decided to make supplies as per requirement to the essential non domestic sectors such as hospitals, educational institutions, etc. For LPG supply to other non-domestic sectors, a committee of three Executive Directors of Oil Marketing Companies have been constituted to review the representations and prioritise the LPG supply”, the Ministry of Petroleum & Natural Gas said Wednesday.


In case of any requirement which are considered as essential in other sectors, a submission can be made to the committee. The Ministry further said, “Since non-domestic LPG supply depends on the availability of imported products, the committee may not be able to address every grievance. Requests will be considered based on their merits, product availability and appropriate decisions will be made accordingly.”

The measure has been taken after automobile industry bodies Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association (ACMA) wrote to the centre expressing concerns over notifications issued restricting the supply of natural gas for industrial use amid the crisis in West Asia. SIAM had urged the Ministry of Petroleum and Natural Gas to restore the allocation of LPG / PNG / Propane “to the greatest extent possible” and provide visibility on the availability of LPG / PNG / Propane supplies for industrial consumers in the automobile sector through a dedicated interface.



LPG is a critical energy source extensively used in industrial paint shops for heating, curing and drying processes to ensure consistent and high-quality paint finish on vehicles. LPG is also used in foundry, forging and machining units, and in other applications within the automotive supply chain, that rely on these fuels for operational processes.

India imports more than 60% of its annual LPG requirement of 31.3 million tonnes, with 85-90% of this routed from West Asia through the Strait of Hormuz. Iran has shut the Strait of Hormuz in retaliation to attacks by the United States and Israel.

The development has come at a time when after sluggish sales through most of this fiscal, demand has started picking up across categories post the GST cuts implemented by the Indian government. While passenger vehicle sales rose by 20.6% yoy to 12.76 lakh units in the third quarter (after declining by 1.4% in H1FY26), commercial vehicle sales went up by 21.5% to 5.7 lakh units (vs 3.9% in the first half) in the same period. The lower tax rates across vehicle categories came into effect from Sep 22, 2025.