Global war, local fix: LPG production up 10% since conflict began, say govt sources

The Centre on Tuesday said India’s LPG supply situation remains stable despite global disruptions triggered by the ongoing West Asia conflict, adding that domestic production has already been ramped up to cushion any short-term shocks.Government sources said LPG production has increased by 10% since the start of the war, even as India has moved quickly to secure alternative energy supplies. Officials said the country has tied up for additional LPG and LNG cargoes from multiple countries and contracted more crude volumes than those initially disrupted.“We are in touch with a large number of countries. There is no problem anywhere, we are doing better,” a government source said, adding that supply chains are being closely monitored.Authorities have also taken what officials described as “hard decisions” to manage gas availability. “Make no mistake, given a choice between commercial and domestic users, the commitment is towards domestic users,” the source said, indicating that household cooking gas supply will be prioritised if shortages intensify.Officials said the situation is being monitored closely. “The situation is being monitored minute to minute, and we are reasonably optimistic,” the source added.When imports wobble, Delhi turns to domestic outputThe government’s reassurances come against the backdrop of growing anxiety within the hospitality industry over commercial LPG supplies. Restaurant and hospitality bodies have written to the Ministry of Petroleum and Natural Gas seeking urgent clarity, warning that any disruption could severely affect daily operations.The National Restaurant Association of India (NRAI) said the sector depends heavily on commercial LPG cylinders. In a communication to the ministry, it warned that supply disruptions could trigger large-scale operational shutdowns.Read more: Hotels, restaurants warn LPG shortage could force closures within daysIndia consumes around 31.3 million tonnes of LPG annually, of which about 87% is used in households, while the rest is consumed by commercial establishments such as hotels and restaurants. However, nearly 62% of the country’s LPG requirement is met through imports, making the fuel vulnerable to global supply disruptions.Strait of Hormuz shock forces supply recalibrationThe current geopolitical tensions have compounded these risks. The closure of the Strait of Hormuz, a key shipping route through which India earlier sourced nearly 85–90% of its LPG imports from West Asian countries such as Saudi Arabia, disrupted fuel flows and forced India to diversify sourcing.Officials said supply logistics are gradually improving. “We are getting more cargoes of LPG. LPG and LNG from other countries have started to come,” the source said, adding that shipping availability has also begun to normalise after earlier disruptions.To manage supplies during the disruption, the government has constituted a three-member committee of oil marketing company executives to engage with commercial LPG users, such as restaurants and reassess supply priorities.Domestic kitchens first, others laterIn a joint statement, state-run oil marketing companies, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, said the government has initiated steps to increase LPG output and ensure adequate supplies.Also read: Indian Oil boosts LPG output as West Asia conflict hits global fuel flows“In light of current geopolitical disruptions to fuel supply and constraints on the supply of LPG, the Ministry has taken steps for higher LPG production and securing supplies for domestic customers,” the companies said.The statement added that while supplies will be ensured for all household consumers, LPG will also be made available to essential non-domestic sectors such as hospitals and educational institutions, while the newly formed committee will review requests from other commercial users and prioritise distribution accordingly.Also read: Domestic LPG price hiked by ₹60; cylinder in Delhi now costs ₹913Earlier, the government had raised domestic LPG prices by ₹60 per cylinder and hiked commercial LPG prices by up to ₹115, amid rising global energy costs and supply disruptions.

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