Government Boosts Domestic LPG Production by 25% Amid Middle East Tensions
Synopsis
In response to rising tensions in West Asia, the Indian government has increased domestic LPG production by 25%, ensuring uninterrupted supply for households. A new committee will oversee equitable distribution, while measures are in place to prevent hoarding and ensure security in crude oil supply.
Key Takeaways
25% increase in domestic LPG production announced.
Focus on household consumers amid West Asia tensions.
Committee formed for fair LPG distribution.
Price of domestic LPG cylinder in Delhi now Rs 913 .
Panic booking and hoarding behavior observed.
New Delhi, March 11 (NationPress) The government has ramped up domestic LPG production by approximately 25% and is prioritizing the entire output for household users to guarantee a steady supply of cooking gas amidst the changing dynamics in West Asia, as reported on Wednesday.
The Ministry of Petroleum and Natural Gas revealed that on March 8, an order was issued directing refineries and petrochemical facilities to enhance LPG production.
Officials noted that India relies on imports for nearly 60% of its LPG requirements, with around 90% of these imports typically transiting through the Strait of Hormuz, a route currently experiencing disruptions due to recent regional events.
To maintain essential supply, domestic users are being prioritized, while non-domestic LPG is being allocated for critical sectors, including hospitals and educational institutions.
A committee comprising three executive directors from Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited has been established to assess LPG allocations for restaurants, hotels, and other commercial users to ensure equitable distribution.
The government has confirmed that the cost of a domestic LPG cylinder in Delhi is currently set at Rs 913 following a recent increase of Rs 60.
Beneficiaries of the Pradhan Mantri Ujjwala Yojana continue to pay Rs 613 per cylinder.
Officials explained that for households under PMUY, the recent price hike translates to less than 80 paise per day.
To assist oil marketing companies, the government has sanctioned Rs 30,000 crore for LPG under-recoveries.
Authorities have reported some instances of panic booking and hoarding among consumers, although the standard delivery cycle remains around two and a half days.
To curb the diversion of cylinders at the distributor level, the Delivery Authentication Code system is being expanded to encompass approximately 90% of LPG consumers.
As a temporary measure to manage demand, the minimum interval between LPG bookings has been increased from 21 days to 25 days.
Officials also stated that India's overall crude oil supply is secure, with the country consuming around 55 lakh barrels of crude oil daily and sourcing imports from nearly 40 countries.
Thanks to diversified sourcing, approximately 70% of crude imports now arrive via routes that do not involve the Strait of Hormuz.
Point of View
I see this government's decisive action to boost domestic LPG production as a commendable effort to safeguard household energy needs amidst geopolitical uncertainties. Prioritizing essential services while ensuring fair distribution reflects a strong commitment to public welfare.
NationPress
30 Jun 2026
Frequently Asked Questions
Why has the government increased LPG production?
The government increased LPG production by 25% to ensure a steady supply of cooking gas for households amid rising tensions in West Asia.
How much of India's LPG is imported?
India imports nearly 60% of its LPG requirements, with a significant portion passing through the Strait of Hormuz.
What measures are being taken to prevent hoarding?
The government is expanding the Delivery Authentication Code system and has increased the booking interval for LPG cylinders to manage demand.
What is the current price of a domestic LPG cylinder?
The price of a domestic LPG cylinder in Delhi is currently Rs 913, following a recent increase.
How does the price increase affect PMUY beneficiaries?
Beneficiaries of the Pradhan Mantri Ujjwala Yojana continue to pay Rs 613 per cylinder, making the recent price rise less impactful.
