India has temporarily reintroduced kerosene for household use and coal for the hospitality sector as the escalating West Asia crisis disrupts critical energy supply lines from the Gulf.
The government has allocated an additional 48,000 kilolitres (kl) of kerosene to states, supplementing the regular monthly quota of 1 lakh kl for cooking fuel. Furthermore, the Ministry of Environment has advised State Pollution Control Boards to permit the use of biomass, RDF pellets, and coal as alternative fuels for hotels and restaurants for one month.
The conflict in West Asia has effectively shut the Strait of Hormuz, the narrow sea lane between Iran and Oman. This disruption is critical because India previously relied on this route for over half of its 5.8 million barrels of daily crude oil.
Beyond crude oil, the closure of this vital passage has cut off 55% of India's LPG (cooking gas) and 30% of its Liquefied Natural Gas (LNG) supplies. In response, oil marketing companies have been forced to prioritise domestic household supply while strictly curtailing deliveries to commercial users.
To manage the limited stocks and curb panic buying, the government has revised the LPG refill ordering window for consumers. Rural users now face an extended wait time of 45 days, an increase from the 25-day limit set previously.
For urban users, the minimum interval between subsidised refills has been set at 25 days. This is an increase from the previous 21-day limit, a move aimed at ensuring equitable distribution across the country's 33 crore households.
Sujata Sharma, Joint Secretary in the Oil Ministry, noted that while supply is constrained, domestic LPG production has been ramped up by 28%. "The government has decided to allow the sale of commercial LPG to meet one-fifth of current demand," she added, noting that state governments will identify the beneficiaries to prevent black marketing.
Addressing the Lok Sabha, Oil Minister Hardeep Singh Puri stated that the Strait of Hormuz has been disrupted for 13 consecutive days. "For the first time in recorded history, the Strait of Hormuz has been effectively closed to commercial shipping," he said.
However, the Minister assured that India’s crude supply remains secure due to structural diversification. India now sources crude from 40 countries, compared to 27 in 2006-07. To stabilise LPG, cargoes are being secured from the US, Norway, Canada, Algeria, and Russia.
The surge in kerosene allocation marks the first increase in over a decade, temporarily reversing India's objective of phasing out the fuel. Delhi was declared India’s first "kerosene-free" city in 2014, part of a decade-long push to replace the subsidized fuel with cleaner LPG under the Pradhan Mantri Ujjwala Yojana.
Minister Puri emphasized that the current "rush-booking" is a result of consumer anxiety rather than a production failure. To ensure transparency, the Delivery Authentication Code (DAC) coverage is being expanded from 50% to 90% of consumers, making undocumented diversion of cylinders nearly impossible