Authorities have authorised the wider use of alternative fuels to ease the strain on liquefied petroleum gas and natural gas networks after disruptions to shipments from West Asia tightened availability and drove up prices. The shift marks a temporary reversal of a decade-long policy drive aimed at replacing traditional fuels such as coal, wood and kerosene with cleaner LPG and piped gas.
Officials say the measures are designed to shield households from the worst effects of the supply squeeze while allowing industries and commercial establishments to adapt by switching to alternative fuels. Hospitality businesses, restaurants and small manufacturers have been among the first to face curbs on LPG allocations as authorities prioritise residential supply. Environmental regulators have advised state pollution control boards to permit the temporary use of biomass, kerosene, refuse-derived fuel pellets and coal in certain sectors to maintain operations during the shortage.
The supply stress is linked to the conflict in West Asia, which has disrupted energy shipments through the Strait of Hormuz, a crucial corridor for crude oil, liquefied petroleum gas and liquefied natural gas moving from the Gulf to Asian markets. The country imports a large share of its LPG needs and has limited strategic reserves of the fuel, leaving the domestic market exposed to sudden supply shocks and price spikes when global trade routes are interrupted.
Government agencies have sought to reassure consumers that domestic cooking gas deliveries remain stable even as authorities adopt contingency measures. Emergency powers have been invoked to instruct refiners to maximise LPG production, diverting propane and butane toward household cooking fuel and away from petrochemical uses. Oil marketing companies have also tightened commercial sales and redirected supplies to residential consumers, a move affecting hotels, restaurants and other energy-intensive sectors.
As part of the response, officials have increased allocations of kerosene to states through the public distribution system to ensure access for households that depend on subsidised fuels. Additional supplies of the product are being released to meet growing demand in areas where LPG refills have become harder to secure.
Energy analysts say the sudden return to older fuels underscores the complexity of managing the transition to cleaner energy sources in a country with rapidly rising consumption. Over the past decade, policies promoting LPG connections for low-income households helped drive a significant decline in the use of biomass and kerosene for cooking, improving public health outcomes and reducing indoor air pollution. Programmes designed to expand LPG access reached tens of millions of homes and sharply increased the penetration of modern cooking fuels in rural regions.
Yet the current disruption reveals how heavily the system relies on global supply chains. Nearly two-thirds of the country’s LPG consumption is met through imports, with a substantial portion arriving from Gulf producers. When shipments are delayed or rerouted, domestic supply can tighten quickly, forcing policymakers to intervene to stabilise markets and protect vulnerable consumers.
Industry groups warn that sustained disruptions could place additional strain on manufacturing and services, particularly sectors that rely heavily on natural gas or LPG for process heat. Fertiliser plants, petrochemical complexes and small industrial units have already faced adjustments to gas allocations, and some facilities have reduced operations as fuel availability fluctuates.
Energy companies have responded by diversifying import sources in an effort to offset supply disruptions from the Gulf. Cargoes are being sourced from producers in North America, Europe and other regions as traders seek alternative routes and suppliers. This diversification strategy is intended to reduce dependence on any single supply corridor and cushion the domestic market from geopolitical shocks.
At the same time, officials are urging consumers and businesses to conserve fuel where possible and avoid panic buying. Authorities have intensified monitoring of fuel distribution channels to prevent hoarding and black-market sales, which can worsen shortages and inflate prices during periods of uncertainty.
Environmental experts note that the temporary return to dirtier fuels may carry consequences for air quality and emissions if prolonged. Burning kerosene, coal and biomass releases higher levels of particulate matter and greenhouse gases compared with LPG, potentially undermining progress made through clean cooking initiatives.
Policy planners therefore face a delicate balancing act: ensuring reliable energy supplies for households and industry while maintaining momentum toward cleaner fuels and reduced emissions. The current crisis has renewed debate among energy economists over the need for larger strategic reserves of LPG and natural gas, as well as expanded domestic production and storage capacity to cushion future shocks.
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