India Orders Refiners to Boost LPG Output as Iran War Threatens Energy Supply

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India has taken precautionary steps to secure its domestic cooking gas supply as the conflict between Iran, the United States, and Israel threatens to disrupt global energy markets.

The government has invoked emergency powers under the Essential Commodities Act, 1955, directing both public and private oil refineries to increase the production of liquefied petroleum gas (LPG), which is widely used by households across the country.

Refineries Told to Prioritise LPG Production

According to reports citing government orders, refiners have been instructed to prioritise LPG output and avoid diverting key components such as propane and butane to other petrochemical products.

Officials said the directive requires companies to ensure that these two main LPG ingredients are used exclusively for the production of domestic cooking gas.

Government sources stated that refiners must focus on boosting LPG production immediately to prepare for potential supply disruptions caused by escalating geopolitical tensions in the Middle East.

Supply to State Oil Companies

The order also specifies that the LPG produced must be supplied only to India’s three major public sector oil marketing companies:

  • Indian Oil Corporation Limited (IOCL)
  • Bharat Petroleum Corporation Limited (BPCL)
  • Hindustan Petroleum Corporation Limited (HPCL)

These companies distribute cooking gas cylinders across the country through their nationwide supply networks.

Immediate Implementation and Legal Action Warning

The directive, issued on March 5, came into force immediately and will remain effective until further government instructions are issued.

Authorities have also warned that any violation of the order could result in action under multiple laws, including:

  • Essential Commodities Act, 1955
  • Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999
  • Other applicable regulatory provisions.

India’s Dependence on LPG Imports

India is the world’s second-largest importer of LPG, with domestic consumption reaching 33.15 million metric tonnes last year.

Approximately two-thirds of the country’s LPG demand is met through imports, with 85–90 percent of supplies coming from the Middle East.

With tensions in the region intensifying, the government’s move aims to ensure uninterrupted cooking gas supply for millions of households and prevent potential shortages in the domestic market.

Originally published on 24×7-news.com.

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