India has asked oil refineries to increase LPG production amid rising tensions in West Asia and concerns about global fuel supply disruptions. Officials say the country has sufficient crude reserves and no immediate LPG shortage. Russia remains India’s largest oil supplier, providing up to 1.7 million barrels per day.
Growing tensions in West Asia, especially involving Iran, the United States and Israel, have triggered fresh concerns about global oil and gas supplies. As the situation becomes more uncertain, the Indian government has started reviewing how crude oil is used across the country.
Officials say the government is working on plans to prioritise the use of crude oil if the conflict affects global supply chains. However, authorities have also reassured citizens that India currently has sufficient crude oil reserves and there is no immediate shortage of liquefied petroleum gas (LPG).
The government has already instructed oil refineries to increase LPG production to ensure that domestic demand remains stable even if supply from the Middle East faces disruption.
Government asks refineries to boost LPG output
India has asked oil refineries to maximise LPG production using available resources. Officials have directed domestic producers to prioritise LPG output by making full use of available propane and butane supplies.
This decision comes after supply disruptions in West Asia raised concerns about the steady flow of fuel to global markets. LPG is widely used in Indian homes for cooking, and ensuring its availability is considered essential for household energy security.
Government sources emphasised that there is currently no shortage of LPG in the country. However, increasing domestic production is seen as a precautionary step to avoid any future supply problems.
India’s heavy dependence on LPG imports
India is the second-largest importer of LPG in the world. Last year, the country consumed around 33.15 million metric tonnes of the fuel.
About two-thirds of this demand is met through imports. A very large share of these imports comes from West Asia, which supplies roughly 85 to 90 percent of India’s imported LPG.
Because of this heavy dependence on the region, any conflict or supply disruption there can quickly affect global markets and create pressure on countries like India.
That is why policymakers are focusing on increasing domestic output wherever possible.