New Policy Aims to Secure LPG Supply Amid Regional Tensions

New Delhi, 16 August – In a strategic response to heightened geopolitical friction in West Asia, India has introduced a binding production schedule for LPG that applies to all major refining complexes and upstream oil‑and‑gas firms. The schedule sets a maximum daily production ceiling of 63,810 tonnes, which translates to about 70 percent of the nation’s estimated LPG demand of 91,000 tonnes per day. The measure is intended to cushion the domestic market against future disruptions in the Hormuz Strait corridor, the primary channel through which most of India’s LPG imports flow. Historically, the country has produced roughly 13.1 million tonnes of LPG annually, leaving a sizeable import gap of over 64 percent. During the early months of the year, the government activated emergency protocols, directing refineries to redirect petrochemical feedstocks toward LPG and urging consumers with access to piped natural gas to switch from cylinders. The new, non‑temporary framework will be invoked whenever the energy ministry assesses that additional output is needed to maintain adequate supply and balanced distribution across states.