India Boosts LPG Production by 25%, Ensures Supply for Domestic Consumers

Finance Minister Nirmala Sitharaman announced that domestic LPG production has increased by 25%, with the entire additional output being allocated to Indian consumers to safeguard against global supply disruptions. She linked this achievement to a decade-long energy transition strategy, emphasizing the government's shift towards self-reliance under the 'Atmanirbhar Bharat' initiative. Sitharaman also highlighted that India's power sector has reached a milestone where non-fossil fuel capacity now exceeds fossil fuel capacity for the first time. The government has directed refineries to maximize LPG production to ensure steady domestic supplies amidst the turbulent West Asia situation.

Key Points: India Ramps Up Domestic LPG Production by 25% Amid Global Crisis

  • 25% rise in domestic LPG production
  • Entire ramped-up output for home consumers
  • Part of long-term energy transition strategy
  • Non-fossil power capacity now exceeds fossil fuels
  • Proactive steps to mitigate West Asia supply risks
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Domestic LPG production up by 25%, entire output of ramped-up production going to domestic consumers: Sitharaman

Finance Minister Nirmala Sitharaman announces a 25% increase in domestic LPG output, with all additional supply directed to Indian consumers to ensure energy security.

Domestic LPG production up by 25%, entire output of ramped-up production going to domestic consumers: Sitharaman
"We are not just depending on getting the steady flow even in troubled waters. - Nirmala Sitharaman"

New Delhi, March 17

The Rajya Sabha on Tuesday returned the Appropriation Bill, 2026, to the Lok Sabha after a reply to the debate by Finance Minister Nirmala Sitharaman, who said the government is making all necessary efforts to ramp up LPG supplies in the wake of the West Asia crisis.

She said despite global "turbulent times....domestic LPG production has gone up by 25%, and the entire output of this ramped-up production is going to domestic consumers."

"In the LPG sector, we have been building capacity, and even in these times, the way in which we have ramped up domestic capacity in LPG is also proving helpful," she said.

The Minister noted that while nearly 65 per cent of India's LPG is imported, and "overwhelmingly majority of it, 90% of the 65% comes from the Strait of Hormuz" and the government is taking proactive steps to avoid shortages.

"But we are not just depending on getting the steady flow even in troubled waters," Sitharaman stated, highlighting the shift toward self-reliance.

She informed the House that the government has directed refineries and petrochemical complexes to "maximize LPG production by diverting propane, butane and propylene and butane streams to the LPG pool."

The Finance Minister linked these developments to the broader 'Atmanirbhar Bharat' initiative, noting that the ability to "ramp up domestic LPG production by 25% literally overnight" is the "outcome of a deliberate, decade-long energy transition strategy launched" by the Prime Minister Narendra Modi.

She stressed that "nothing is a standalone" and that "everything in this policy seems to come together in the name of Atmanirbhar" to meet emergency situations.

Sitharaman also drew parallels with the power sector, which she said, "today stands as a very big support for us." She reported that by January 2026, the total installed capacity more than doubled to 520.5 gigawatts.

"Non fossil sources now stand at 271.97 gigawatts, accounting for more than 52% of total capacity and surpassing fossil fuel capacity," she said, adding that "for the first time in India's history, non-fossil sources exceed fossil fuel capacity."

The Minister also highlighted that India reached this "remarkable position" five years ahead of the scheduled deadline. She reiterated that the steady policy-backed approach ensures that "any situation which requires that additional support can happen," ensuring that "domestic supplies will be adequately streamlined and the supplies will remain steady."

"We are not just depending on a steady flow even in troubled waters. The way in which we have built our power sector, in today's times, stands as a very big support for us, because Atmanirbhar Bharat and sufficiency in energy through our power sector are actually playing out in many different ways in supporting this," Sitharaman stated.

- ANI

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Reader Comments

P
Priya S
Good news, but I hope this translates to stable prices for the common man. The Ujjwala scheme helped, but the recent price hikes have been tough on the middle class. Self-reliance must also mean affordability.
A
Arjun K
The link to Atmanirbhar Bharat is clear. A decade-long strategy is finally showing results. The parallel with the power sector, where non-fossil capacity has crossed fossil fuels, is even more impressive. This is long-term planning.
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Sarah B
As an expat following Indian policy, this is a smart move. Reducing dependency on a volatile region like West Asia is essential for any major economy. The 25% boost "overnight" shows good crisis management capability.
K
Kavya N
My mother in the village was worried about gas supply. I will share this news with her. It's a relief that the government is taking proactive steps. Hope the supply chain to rural areas remains strong.
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Vikram M
The numbers are promising, but the proof will be in the delivery. We've heard big claims before. I appreciate the effort, but let's see if every household, especially in remote areas, gets an uninterrupted supply without price gouging.
M
Michael C
Interesting read. Divers

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