NEW DELHI: The government is taking several measures to reduce dependence on LPG imports and enhance energy security in the medium to long term, Minister of State for Environment Suresh Gopi informed Lok Sabha on Thursday in a written reply.
This includes prioritizing pipelined natural gas and developing renewable energy, including solar, wind, bioenergy and green hydrogen.
Moreover, as part of the LPG import diversification strategy, PSU’s oil marketing companies recently entered into contracts to import approximately 2.2 million metric tons of US-origin LPG for 2026, covering approximately 10% of the country’s total LPG import requirements.
Gopi was responding to Rajya Sabha MP Amar Singh’s questions on: (i) whether the government has assessed the impact of global energy supply disruptions and geopolitical tensions in West Asia on LPG imports and domestic availability; (2) Initiatives taken to manage LPG supply chains, including measures to promote local production and regulate distribution among consumer groups; and (3) proposed steps to enhance the resilience of LPG supplies and prevent future shortages.
In the short term, in order to boost domestic LPG production for existing use, the Center on March 9 directed all oil refining companies, including petrochemical complexes, that the total production of C3 and C4 hydrocarbon streams – such as propane, butane, propylene and butene – be used exclusively for LPG production and supplied only to public sector oil marketing companies. Refiners have also been directed not to divert these flows to manufacture petrochemical products or downstream derivatives, Jobe said.
OMCs have been directed to ensure that the LPG produced is supplied exclusively to domestic consumers. As a result of these initiatives, domestic LPG production has increased by 40%.
While domestic LPG supplies were prioritized, commercial LPG supplies were initially affected. Subsequently, the government restored partial supplies of 20% to commercial consumers, which was later boosted to a total allocation of 50%, including 10% linked to Papua New Guinea’s expansion reforms, he added.
This allocation has been prioritized for key sectors like restaurants, dhabas, hotels, industrial canteens, food and dairy processing units, subsidized canteens run by state governments or local bodies, community kitchens and 5 kg FTL cylinders for migrant workers.
“India imports about 60% of its LPG consumption, of which about 90% passes through the Strait of Hormuz. Given the ongoing geopolitical developments in West Asia, the availability of imported LPG in the country has been affected. The government has taken a series of proactive measures to ensure stability in LPG supply. These measures include prioritization of domestic LPG consumption, diversification of import sources, dynamic inventory management, and inter-regional allocation to deal with local products. Shortage,” Gopi said.
Further, City Gas Distribution (CGD) entities have been advised to prioritize the provision of PNG connections to commercial establishments such as restaurants, hotels and canteens across the authorized geographical areas to address concerns regarding commercial LPG availability.
“The government has asked all central government ministries/departments to conduct a comprehensive assessment of the potential demand for PNG communications in institutions under their jurisdiction, and appoint a nodal officer in each ministry/department to coordinate this process. In accordance with the above directives, the Petroleum and Explosives Safety Organization (PESO) has instructed all its offices to prioritize CGD-related requests and ensure they are disposed of within 10 days of receipt,” Gope said.
“In addition, emphasis is being placed on developing renewable energy, including solar, wind, bioenergy and green hydrogen, along with implementing energy efficiency measures across sectors. Blending of ethanol and other biofuels is also being promoted to reduce dependence on imports and enhance energy sustainability,” he added.
“Strategically, diversification of LPG imports is being pursued to ensure security of supply and mitigate risks arising from regional disruptions or geopolitical events. As part of this strategy, LPG market management companies recently entered into contracts to import approximately 2.2 million metric tons (MMT) of US origin LPG for calendar year 2026, covering approximately 10% of the country’s total LPG import requirements. This represents an important step in enhancing the resilience of India in the field of energy, the response added: “By creating a reliable alternative source of LPG supplies outside the traditional Arabian Gulf region.”
