Amid growing geopolitical instability in West Asia, the Central government has stepped up efforts to reduce India’s dependence on imported liquefied petroleum gas (LPG) and enhance the country’s overall energy security.
In a written reply to the Lok Sabha, Minister of State for Environment Suresh Gopi outlined a series of short-term and long-term measures being undertaken by the government to address potential disruptions in LPG supply caused by global tensions.
The government is prioritising the expansion of Piped Natural Gas (PNG) infrastructure as a key strategy to reduce reliance on LPG. Alongside this, there is a strong push to accelerate renewable energy development, including solar, wind, bioenergy, and green hydrogen.
These initiatives are part of a broader policy framework aimed at diversifying energy sources and ensuring that India is better insulated from global supply shocks in the future.
The minister’s response came following queries raised by a Member of Parliament regarding the impact of geopolitical tensions in West Asia on India’s LPG imports and domestic availability. The questions also sought clarity on the government’s preparedness to manage supply disruptions and prevent shortages.
India currently imports around 60% of its LPG requirements, with nearly 90% of these imports passing through the strategically crucial Strait of Hormuz. Any disruption in this region, therefore, poses a significant risk to the country’s energy supply chain.
Acknowledging this vulnerability, the government stated that the availability of imported LPG has been affected due to ongoing geopolitical developments, prompting proactive intervention.
As part of its short-term response, the Centre issued directives on March 9 to oil refining companies and petrochemical complexes across the country. These directives mandate that the entire output of key hydrocarbon streams C3 and C4, including propane, butane, propylene, and butenes be exclusively used for LPG production.
Refineries have also been instructed not to divert these hydrocarbons for petrochemical manufacturing or downstream derivative products, ensuring that maximum output is channelled towards domestic LPG needs.
Further, public sector Oil Marketing Companies (OMCs) have been directed to prioritise the supply of LPG for domestic consumption.
As a result of these measures, domestic LPG production has reportedly increased by 40%, providing a crucial buffer against potential supply disruptions.
While prioritising household consumption, the government initially restricted LPG supply for commercial users, leading to reduced availability in sectors dependent on bulk LPG usage.
However, the supply to commercial users has since been partially restored. It was first resumed at 20% capacity and later increased to 50%, including a 10% allocation linked to PNG expansion reforms.
The restored supply has been strategically prioritised for essential sectors such as restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations, and subsidised kitchens run by government bodies. Additionally, smaller 5 kg Free Trade LPG (FTL) cylinders have been made available for migrant workers.
To strengthen resilience, the government has adopted a multi-pronged strategy that includes diversification of import sources, dynamic stock management, and inter-regional allocation of LPG supplies.
These measures are aimed at ensuring that any localised shortages can be quickly addressed and that supply remains stable even during global disruptions.
The government has emphasised that these steps are part of a proactive approach to maintaining continuity in LPG availability, particularly in times of international uncertainty.
A major component of the government’s strategy involves expanding PNG connectivity, particularly for commercial establishments that traditionally rely on LPG.
City Gas Distribution (CGD) entities have been advised to prioritise PNG connections for high-consumption sectors such as hotels, restaurants, and canteens. This shift is expected to reduce pressure on LPG supplies and create a more balanced energy ecosystem.
In addition, all central ministries and departments have been directed to assess the potential demand for PNG within their respective jurisdictions. Each department has been asked to appoint a nodal officer to coordinate this process.
To ensure rapid implementation, the Petroleum and Explosives Safety Organisation (PESO) has been instructed to fast-track approvals related to City Gas Distribution infrastructure.
According to the directive, all CGD-related applications must be processed and cleared within 10 days of submission, significantly reducing bureaucratic delays and accelerating project execution.
This move is expected to play a critical role in expanding the PNG network and reducing dependence on LPG in both urban and semi-urban areas.
Beyond immediate measures, the government is focusing on long-term solutions to reduce dependence on fossil fuel imports. The push for renewable energy, including solar, wind, bioenergy, and green hydrogen is central to this strategy.
By diversifying energy sources and increasing domestic production capacity, India aims to build a more resilient and self-reliant energy system.
