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India Boosts LPG Production by 25% After Government Push to Strengthen Domestic Supply

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India Boosts LPG Production by 25% After Government Push to Strengthen Domestic Supply
12 Mar 2026
5 min read

News Synopsis

India has significantly increased its domestic LPG production by 25 percent following a series of government directives aimed at strengthening energy security and ensuring uninterrupted supply for household consumers. The move comes amid evolving geopolitical tensions in West Asia and reflects India’s strategic efforts to safeguard fuel availability and diversify crude oil sourcing.

India’s LPG Production Rises by 25% Following Government Directive

India’s domestic production of Liquefied Petroleum Gas (LPG) has surged by nearly 25 percent after the government implemented a set of strategic measures to boost fuel availability for household consumers. The decision was announced during an interministerial briefing held in New Delhi, where officials highlighted steps taken to secure the country’s energy supply amid ongoing geopolitical developments in West Asia.

Officials from key ministries provided updates on India’s fuel supply chain, crude oil sourcing, maritime safety, and the welfare of Indian citizens working in the Gulf region.

Government Orders Refineries to Maximise LPG Output

During the briefing, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said the government issued a directive on March 8, 2026, instructing refineries and petrochemical complexes across the country to maximize LPG production.

Under the order, these facilities were asked to divert hydrocarbon streams such as propane, butane, propylene, and butenes into the LPG production pool. These feedstocks are commonly used in petrochemical processing, but the temporary diversion ensures higher output of LPG to meet domestic demand.

According to Sharma, the move has already produced significant results. Domestic LPG production has risen by about 25 percent, helping strengthen supply at a time when global energy markets remain volatile.

She also confirmed that the entire volume of domestically produced LPG is now being directed specifically toward household consumers. This prioritization aims to support millions of Indian families who rely on LPG cylinders for daily cooking needs.

Focus on Energy Security Amid West Asia Developments

The government’s decision to boost LPG output comes amid ongoing geopolitical tensions in the West Asia, a region that plays a crucial role in global oil supply.

Officials noted that despite the evolving situation, India’s crude oil supply remains secure. The country has actively diversified its import sources in recent years to reduce dependency on any single route or region.

Sharma stated that nearly 70 percent of India’s crude oil imports are now arriving through routes that bypass the Strait of Hormuz, one of the world’s most strategically sensitive maritime passages.

This diversification strategy has helped India maintain stable energy supplies even during periods of geopolitical uncertainty.

India Expands Global Crude Oil Sourcing

India currently imports crude oil from about 40 countries, reflecting the government’s broader strategy to diversify supply chains and enhance energy resilience.

Officials said Indian oil marketing companies have secured crude cargoes from multiple global sources, ensuring sufficient reserves to meet domestic demand.

Sharma also emphasized that the volume of crude oil secured through alternative routes exceeds what would typically arrive through the Strait of Hormuz, providing an additional buffer against potential disruptions.

In addition to crude oil, India’s gas companies have also been actively sourcing Liquefied Natural Gas (LNG) from new suppliers. Two LNG cargo shipments are currently on their way to India, further strengthening the country’s energy inventory.

Government Monitoring Safety of Indians in Gulf Region

During the briefing, Randhir Jaiswal, spokesperson for the Ministry of External Affairs, addressed concerns regarding the safety of Indian nationals living and working in Gulf Cooperation Council countries and other parts of West Asia.

Jaiswal stated that the Indian government remains fully committed to protecting the welfare of its citizens abroad. Indian diplomatic missions across the region are in continuous contact with community members and local authorities to ensure their safety.

However, the spokesperson also confirmed that two Indian nationals lost their lives and one person remains missing after merchant vessels they were on came under attack in the region. Several other Indian nationals suffered injuries and are currently receiving medical treatment.

Indian consulates are closely monitoring their situation and providing necessary support.

Indian Seafarers in Persian Gulf Under Close Watch

Providing an update on maritime operations, Rajesh Kumar Sinha, Special Secretary at the Ministry of Ports, Shipping and Waterways, said the government is closely tracking the safety of Indian vessels operating in the Gulf.

According to Sinha, there are currently 28 Indian-flagged ships operating in the Persian Gulf, carrying a total of 778 Indian seafarers.

Authorities are actively monitoring the situation to ensure the safety and security of these vessels and their crew members. Ship managers, recruitment agencies, and Indian diplomatic missions are working together with local authorities to ensure timely assistance and medical support if required.

Port Operations in India Remain Stable

Officials also reassured that port operations across India continue to function normally despite geopolitical tensions in the region.

The government has instructed ports to extend all possible support to exporters and logistics operators to minimize disruptions in international trade.

Sinha noted that authorities are coordinating closely with shipping companies and exporters to maintain smooth export-import operations and ensure continuity in India’s external trade activities.

Ports have been asked to provide assistance wherever needed so that supply chains remain uninterrupted.

Strategic Measures Aim to Stabilize Energy and Trade

The recent government initiatives reflect a broader strategy aimed at strengthening India’s energy security, protecting maritime operations, and ensuring the safety of its citizens abroad.

By increasing domestic LPG production, diversifying crude oil sources, and securing LNG cargoes, the government aims to maintain stable energy availability for households and industries.

At the same time, close monitoring of maritime operations and support for Indian nationals in West Asia underline the country’s proactive approach in dealing with global uncertainties.

These coordinated efforts highlight India’s preparedness to manage energy supply risks while safeguarding economic and humanitarian interests.

TWN Special