In Brief
- India orders refineries to maximize LPG production beyond current minimum levels.
- Directive aims to ensure stable cooking gas supply amid Strait of Hormuz tensions.
- Refineries must apply all technical and economic measures for increased output.
- Move addresses potential disruptions in LPG imports due to regional crisis.
India's government has directed its state-owned and private oil refiners—alongside crude oil explorers—to prepare for a sharp increase in domestic cooking gas production. The move aims to insulate the nation’s supply chain as ongoing conflict near the Strait of Hormuz creates severe uncertainty over a maritime corridor that carries nearly 90% of India's LPG imports.
According to an August 13 government notification, companies must "implement all technically and economically feasible measures" to push LPG output beyond current baseline levels. To achieve this, refiners are reviewing operational processes and evaluating alternative feedstock uses, such as converting naphtha to LPG. By maximizing domestic yields, authorities aim to reduce reliance on vulnerable import routes and safeguard cooking gas availability across the country.
