India Boosts Domestic LPG Production Amid Middle East Tensions

In response to rising tensions in the Middle East, India's government has invoked emergency measures to boost domestic production of liquefied petroleum gas (LPG). The move is aimed at securing an uninterrupted supply for the country's cooking needs by utilizing domestic resources more effectively.

India, which consumed 31.3 million tonnes of LPG in 2024-25, heavily relies on imports, predominantly from the conflict-vulnerable Strait of Hormuz. With this lifeline disrupted, local refineries have been directed to maximize LPG production from propane and butane streams, according to an oil ministry order.

To mitigate the impact of halted supplies from the key transit route, India has inked a significant import deal with the United States, diversifying its energy sources. The government remains hopeful in its ability to maintain and reinforce its LPG supply chain despite the geopolitical challenges.