Fuel for thought: India boosts domestic LPG output to 60% amid Middle East tensions

Fuel for thought: India boosts domestic LPG output to 60% amid Middle East tensions

India’s domestic LPG production now meets nearly 60% of the country’s requirement, offering relief as the Middle East war continues to ripple across global energy markets. With the Iran war crossing 40 days, authorities are working to keep fuel supplies steady. One of the measures taken by the Centre is switching from LPG to PNG, with more than four lakh consumers moving to it in the past five weeks. The move is aimed towards reducing reliance on LPG while ensuring households continue to get uninterrupted fuel.Detailing the developments, Sujata Sharma, joint secretary in the ministry of petroleum and natural gas, said on Friday that the expansion of PNG coverage is gaining pace with support from states and Union Territories.

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“In the last five weeks alone, around 4.05 lakh new LPG connections have been gasified, and over 4.41 lakh new consumers have been registered. Continuous support is also being received from state governments and Union Territory administrations, and it is expected that the expansion of the PNG network will accelerate further,” Sharma said.Despite the ongoing geopolitical volatility, officials maintained that domestic LPG demand is being adequately met, with distributors holding sufficient stocks and no shortages reported nationwide.Commercial supplies, which had come under strain earlier, have now recovered to nearly 70%. Essential services and industries, including hospitals, educational institutions, hotels, dhabas, pharmaceuticals, packaging units and labour-intensive sectors, continue to receive priority allocation.Efforts have also been made to widen access for vulnerable groups. The supply of 5 kg LPG cylinders has been doubled, with relaxed documentation norms helping boost uptake.“We have simplified access to 5 kg cylinders by easing documentation requirements and significantly increasing supply. As a result, nearly one lakh cylinders are being sold,” Sharma added.Since March 14, commercial LPG sales have touched around 106,000 tonnes, while daily consumption has stabilised between 6,000 and 6,500 tonnes.Authorities have also intensified outreach, conducting over 2,400 awareness campaigns in the past week to inform consumers about available fuel options and improve access.In the natural gas segment, priority continues to be given to domestic consumption, while industries connected to the grid are currently receiving about 80 per cent of their requirements. Supplies to the fertiliser sector have been restored to 95 per cent.City gas distribution companies have been instructed to maintain uninterrupted supply to critical areas such as food processing, cold storage and healthcare.Officials further said that crude oil inventories remain adequate and refineries are functioning at optimal levels. Additionally, around 800 tonnes per day of petroleum products are being allocated to pharmaceutical and petrochemical industries to support essential manufacturing activity.

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