The government has raised domestic production of liquefied petroleum gas (LPG) by nearly 25 per cent to maintain a stable supply for households. Authorities have also instructed that the additional production should primarily serve domestic consumers.
The move comes as a precautionary response to the evolving geopolitical situation in West Asia.
The Ministry of Petroleum and Natural Gas announced that it issued a directive on March 8 asking refineries and petrochemical units to increase LPG production. The step is intended to ensure that the cooking gas supply remains stable if global supply chains face disruptions.
India relies on imports for almost 60 per cent of its LPG demand. Nearly 90 per cent of these imports generally pass through the Strait of Hormuz, a vital shipping route affected by recent developments in the region.
Officials said priority is currently being given to domestic LPG users. Supplies meant for non-domestic use are being reserved mainly for essential sectors such as hospitals and educational institutions.
Panel to Review Commercial Allocations
The government has set up a three-member panel to review LPG allocations to commercial establishments. The committee includes executive directors from Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited.
The panel will examine supplies to restaurants, hotels and other businesses to maintain balanced distribution.
Officials 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 receive cylinders at a subsidised price of Rs 613.
Authorities noted that the increase translates to less than 80 paise per day for households under the scheme.
To support oil marketing companies, the government has approved compensation worth Rs 30,000 crore to cover LPG under-recoveries. This measure is expected to help companies continue supplying LPG without disruption.
Authorities are expanding the Delivery Authentication Code system to prevent diversion at the distributor level. The system will cover nearly 90 per cent of LPG consumers.
As a temporary demand-management measure, the minimum interval between LPG bookings has been increased from 21 days to 25 days.
Officials also said India’s crude oil supply remains stable. The country consumes about 55 lakh barrels of crude oil each day and imports supplies from nearly 40 countries, with around 70 per cent arriving through routes outside the Strait of Hormuz.
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