On April 1, 2026, Prime Minister Narendra Modi chaired a meeting of the Cabinet Committee on Security (CCS) in New Delhi to address the energy supply risks triggered by the escalating West Asia conflict and the blockade of the Strait of Hormuz. To safeguard India’s energy security, the Prime Minister directed state-owned oil and gas companies to immediately diversify their procurement sources for Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG). This strategic shift is being implemented by securing new supply contracts from Russia, Australia, the United States, and Angola, thereby reducing the nation’s heavy historical reliance on Middle Eastern imports during this period of geopolitical volatility.
The Prime Minister’s directive comes at a critical juncture, as West Asia traditionally accounts for approximately 90% of India’s LPG and 50% of its LNG requirements. By broadening the supplier base, the government aims to insulate the domestic economy from price shocks and physical shortages. To further mitigate the crisis, the CCS has approved an increased allocation of commercial LPG—raised to 70% of pre-crisis levels—specifically for labor-intensive sectors such as steel, textiles, and chemicals to prevent industrial slowdowns.
In addition to procurement shifts, the government is focusing on internal demand management and infrastructure protection. The CCS has incentivized the transition to Piped Natural Gas (PNG) for domestic users to alleviate the pressure on LPG stocks. Furthermore, gas-based power plants have been exempted from the gas pooling mechanism to ensure a steady electricity supply during the peak summer months. To prevent domestic distress, the Prime Minister confirmed that prices for household consumers would remain stable, supported by strict anti-hoarding measures and daily monitoring by state-level authorities.
