India Boosts Domestic LPG Production 25% Amid Crisis

Emergency Production Boost
 

Government order (March 8) directs refineries, petrochemical complexes to maximize LPG output by diverting propane, butane, propylene, butenes streams. Domestic production jumps 25%, entire output for households only

Import Dependency Exposed

India imports 60% of LPG needs; 90% via Strait of Hormuz, now disrupted by Iran war. 47.4 MMSCMD gas supply affected by force majeure. Critical sectors prioritized under Essential Commodities Act

Household Prioritization

Domestic cylinders (₹913 Delhi) prioritized; PMUY beneficiaries still pay ₹613. Commercial LPG reserved for hospitals, schools. 3-member IOCL-HPCL-BPCL committee reviews restaurant, hotel allocations

Demand Management Activated

Cylinder rebooking gap extended 21→25 days. Delivery Authentication Code expanded to 90% consumers prevents diversion. Government warns against panic buying, normal 2.5-day delivery cycle maintained despite surge

Crude Supply Diversified

70% crude imports now bypass Hormuz vs 55% earlier, sourcing from 40 countries. Refineries at 100%+ capacity. Two LNG cargoes enroute. ₹30,000 crore approved for oil company under-recovery compensation

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