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India Boosts LPG Production 25% to Shield Homes from Middle East Tensions

The Indian government has directed a 25% increase in domestic LPG production to ensure uninterrupted supply for households, prioritizing them over commercial users amid tensions in West Asia. A committee has been formed to review and ensure fair distribution of LPG to restaurants and hotels. While domestic cylinder prices have risen, Ujjwala scheme beneficiaries continue to receive a significant subsidy. Officials assure that India's crude oil supply remains secure due to diversified import sources, with most now bypassing the Strait of Hormuz.

Key Points: India Increases LPG Production 25% Amid Middle East Tensions

  • 25% rise in LPG production
  • Priority supply to households
  • Committee formed for commercial allocation
  • Diversified crude oil imports reduce Hormuz risk
2 min read

Domestic LPG production rises 25 pc as govt directs supply to households amid Middle East tensions

India boosts domestic LPG output by 25%, prioritizes household supply, and forms a committee to manage commercial allocations amid West Asia tensions.

"priority is being given to domestic users while non-domestic LPG is being reserved for critical sectors - Ministry of Petroleum"

New Delhi, March 11

The government has increased domestic LPG production by about 25 per cent and is directing the entire output towards household consumers to ensure uninterrupted cooking gas supply amid the evolving situation in West Asia, it was announced on Wednesday.

According to the Ministry of Petroleum and Natural Gas, the government issued an order on March 8 asking refineries and petrochemical complexes to maximise LPG production.

Officials said India imports nearly 60 per cent of its LPG needs and around 90 per cent of those imports usually pass through the Strait of Hormuz, which has been affected by recent developments in the region.

To ensure essential supplies, priority is being given to domestic users while non-domestic LPG is being reserved for critical sectors such as hospitals and educational institutions.

A three-member committee consisting of executive directors from Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited has been formed to review LPG allocations to restaurants, hotels and other commercial users and ensure fair distribution.

The government said the price of a domestic LPG cylinder in Delhi currently stands at Rs 913 after a recent Rs 60 increase.

However, beneficiaries of the Pradhan Mantri Ujjwala Yojana continue to pay Rs 613 per cylinder.

Officials said that for a PMUY household, the recent price increase works out to less than 80 paise per day.

To support oil marketing companies, the government has approved compensation of Rs 30,000 crore for LPG under-recoveries.

Authorities also said they have noticed some panic booking and hoarding behaviour by consumers, but the normal delivery cycle remains around two and a half days.

To prevent diversion of cylinders at the distributor level, the Delivery Authentication Code system is being expanded to cover about 90 per cent of LPG consumers.

As a temporary measure to manage demand, the minimum gap between LPG bookings has also been increased from 21 days to 25 days.

Officials also said India's overall crude oil supply remains secure. The country consumes around 55 lakh barrels of crude oil every day and imports from nearly 40 countries.

Due to diversified sourcing, about 70 per cent of crude imports now come from routes outside the Strait of Hormuz.

- IANS

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Reader Comments

P
Priya S
Good move to prioritize households. My mother in the village is a Ujjwala beneficiary and she was worried about supply. The subsidy makes a huge difference for her. The 25-day gap between bookings is sensible to prevent hoarding. We all need to be responsible.
R
Rahul R
Increasing domestic production is the right long-term strategy. We can't always depend on imports through volatile regions. But a committee to review allocations to hotels/restaurants? Hope they are strict. Commercial users often get priority over common people.
M
Michael C
While the intent is good, the recent price hike to Rs 913 hurts. They say it's less than 80 paise a day for Ujjwala users, but for regular households, every rupee counts with inflation. The Rs 30,000 crore compensation to OMCs is taxpayer money. Hope it's used efficiently.
A
Anjali F
The DAC system expansion to prevent diversion is excellent! I've heard stories of cylinders being sold in the black market. This will ensure the subsidy reaches the right people. Jai Hind! 🇮🇳
K
Karthik V
The fact that 70% of crude imports are now outside the Strait of Hormuz shows good planning. Diversification is key for energy security. But we must also accelerate our shift to electric and other clean cooking solutions in the long run.

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