Our Bureau
New Delhi
India has used special emergency powers to ask oil refiners to quickly increase cooking gas production as the conflict involving the US and Iran disrupts supplies from the Gulf region. The move is aimed at preventing a shortage of LPG cylinders in Indian homes, where the fuel is the main cooking source for most families.
Under an order issued this week, both public and private refiners have been told to maximise LPG output by using all available propane and butane only for cooking gas, instead of diverting these gases to make petrochemicals or petrol-blending components. The government has also said that this LPG must be supplied mainly to the three state-run oil marketing companies, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, so that household supply remains smooth across the country.
Officials say India relies on imports for about two-thirds of its LPG needs, and nearly 85–90 per cent of those imports come from Gulf nations now hit by the crisis and shipping disruptions near the Strait of Hormuz. With exports from the region slowing, India promptly acted on the emergency step. Government data shows there are roughly 33 crore active LPG consumers, making uninterrupted supply a key political and economic concern.
The order, issued under the Essential Commodities Act, is similar to measures taken after the Ukraine war, when refiners were asked to prioritise domestic fuel over exports. Industry experts warn that diverting more propane and butane to LPG could reduce output of certain petrol components and other petrochemical products, potentially hurting margins for some private refiners, including major exporters.
