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India Invokes Emergency Powers, Orders Refiners to Boost Lpg Output
The Ministry of Petroleum directs refiners to fully utilize propane and butane for LPG, prioritizing domestic supply amid 85% import disruptions due to West Asia conflict.
- On March 5, the Ministry of Petroleum and Natural Gas ordered refiners to maximise LPG production and supply it to IndianOil, Hindustan Petroleum and Bharat Petroleum for domestic consumption.
- The West Asia conflict, now in its seventh day, has disrupted cargo through the Strait of Hormuz, where over 80% of India’s LPG imports pass, threatening domestic LPG consumers exceeding 332 million.
- Refiners are ordered to use all produced propane and butane streams for LPG manufacture and are barred from diverting them to petrochemical products, enforced under the Essential Commodities Act / ESMA.
- Trade sources warned diverting propane and butane would curtail alkylates output at Reliance Industries Ltd and hurt petrochemical companies' margins, while government sources said rationing and price hikes are not needed.
- India consumes around 31 million tonnes of LPG annually, and with domestic LPG production about 13 million tonnes, import dependency is around 58%, supported by a US LPG deal of about 2.2 million tonnes in 2026.
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17 Articles
17 Articles
India has made a major decision regarding LPG supply and issued an order to all companies. India has over 330 million active LPG users.
Govt directs refiners in India to maximise production of LPG, prioritise domestic supply
According to an order released by the Ministry of Petroleum and Natural Gas (MoPNG), oil refiners in the country will be asked to ensure that critical gases such as propane and butane are prioritised for LPG production for households.
Facing supply disruption, govt directs refiners to raise LPG production, halts feedstock supply for petrochemicals
The Centre has invoked the Essential Commodities Act to prioritize household cooking gas over industrial petrochemicals as West Asian supply disruptions leave the country with just 25 days of LPG stock.
·New Delhi, India
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The country has about 332 million active GLP consumers, according to government data
·Brazil
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Total News Sources17
Leaning Left3Leaning Right4Center3Last UpdatedBias Distribution40% Right
Bias Distribution
- 40% of the sources lean Right
40% Right
L 30%
C 30%
R 40%
Factuality
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