The Indian government has directed oil refineries across the country to increase the production of liquefied petroleum gas (LPG) to ensure adequate supply for domestic households. The order was issued by the Ministry of Petroleum and Natural Gas as concerns grow over fuel supply disruptions linked to the ongoing conflict in West Asia.
Officials said the additional LPG produced will be primarily allocated for domestic cooking gas consumption, which serves millions of households across the country.
West Asia Conflict Triggers Supply Concerns
The move comes amid escalating geopolitical tensions in the Middle East, a region that plays a crucial role in global energy supply. Any disruption in shipping routes or oil production can quickly affect international fuel markets.
India relies heavily on imports for its LPG requirements, and a large portion of these shipments pass through the Strait of Hormuz, a strategic shipping route that could be affected by regional conflict.
To reduce the risk of shortages, the government is taking proactive measures to strengthen domestic production and manage available resources carefully.
Propane and Butane to Be Used Only for LPG Production
Under the new directive, refineries have been instructed to divert key components such as propane and butane toward LPG production instead of using them in petrochemical manufacturing.
This step is expected to increase the availability of cooking gas cylinders across the country and ensure that households receive priority access.
The LPG produced will be supplied mainly to the three major state-run oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation — which distribute cylinders to domestic consumers nationwide.
Commercial Supply May Face Restrictions
While households will be given top priority, supply for commercial users such as hotels, restaurants, and industries may be monitored more closely.
Reports indicate that non-domestic LPG supply could be restricted or reviewed depending on availability, with essential services like hospitals and educational institutions receiving preference.
The government may also regulate distribution to prevent hoarding or black-market sales during the period of supply uncertainty.
Ensuring Stable Cooking Gas Supply
The government’s directive highlights the importance of securing essential energy resources during global crises. Cooking gas remains a critical fuel for millions of Indian households, particularly under schemes that expanded LPG access to rural families.
By increasing production and prioritising domestic use, authorities aim to avoid shortages, stabilise supply chains, and protect consumers from potential disruptions caused by geopolitical tensions.
If the conflict in West Asia continues, additional policy measures could be introduced to ensure uninterrupted LPG supply across the country.