Refineries Directed to Prioritise Cooking Gas Production | Additional LPG Reserved Only for Household Consumers

Special Correspondent: Arun Sharma, New Delhi / Kolkata

Amid escalating tensions and supply disruptions caused by the ongoing crisis in West Asia, the Central government has taken decisive administrative action to safeguard the country’s domestic cooking gas supply.


Invoking special emergency powers, the government has directed oil refining companies to immediately increase production of Liquefied Petroleum Gas (LPG) and ensure uninterrupted availability for household consumers across the country.


Officials said the move is aimed at preventing shortages in the domestic market as geopolitical instability threatens global energy supply chains.


Refineries Told to Prioritise LPG Production
Under the new directives, refineries have been asked to prioritise LPG output over other by-products such as propane and butane.
In a clear policy shift, the government has also instructed refineries not to divert LPG feedstock for the production of petrochemicals or other chemical products during the current situation.


Authorities stressed that all additional LPG produced under the directive will be reserved exclusively for domestic household consumption, warning that companies violating the order could face strict punitive action.

Supply Risks Linked to the Strait of Hormuz
India depends heavily on imports to meet its cooking gas demand, with around 60% of LPG requirements sourced from overseas markets.
A major portion of these imports travels through the strategically crucial Strait of Hormuz, a key maritime corridor for global energy trade. Rising tensions in the region have heightened concerns about possible supply disruptions.


India’s annual LPG demand stands at approximately 31.3 million tonnes, while domestic production accounts for only about 12.8 million tonnes, making the country significantly dependent on imports.


Panic Booking Reported in Eastern States
Following reports of supply uncertainties, several areas in West Bengal and Odisha have witnessed panic booking of LPG cylinders.


To prevent hoarding and maintain supply stability, major oil marketing companies such as Indian Oil Corporation and Bharat Petroleum have introduced a mandatory 21-day gap between two cylinder bookings.


Officials said the measure is intended to discourage stockpiling and ensure fair distribution among consumers.


Government Secures Alternative Supply Sources
To strengthen energy security, the government is also working to diversify import sources.
According to officials, India has signed new agreements to import about 2.2 million tonnes of LPG from the US Gulf Coast. Authorities are also exploring additional supply arrangements from other international markets in case shipments from major suppliers such as Qatar are disrupted.


Focus on Protecting Household Consumers
Government sources said the immediate priority is to protect household consumers from supply shocks and maintain stability in the domestic LPG distribution system despite the global crisis.


The proactive measures are being seen as part of a broader strategy to strengthen India’s energy security and shield consumers from geopolitical disruptions affecting global fuel markets.