Why India is producing only LPG for cooking gas
India just pulled out the Essential Commodities Act to make sure everyone keeps getting liquefied petroleum gas (LPG) for cooking, even with chaos in global supply.
All refiners have to ramp up LPG production using every bit of propane and butane they have got.
Why now? Because the main import route, through the Strait of Hormuz, is blocked thanks to fresh Middle East tensions.
What is the government doing?
India consumed 31.3 million tons in the financial year 2024-25, but local production covers less than half.
Most imports transit the Strait of Hormuz and originate from Gulf/Middle Eastern suppliers (including Saudi Arabia).
To keep kitchens running for over 330 million households, the government is making refiners send all their LPG only to big public distributors (no sneaky diversions).
Anyone breaking these rules faces penalties.
India is also lining up new suppliers
To dodge shortages, India is lining up new suppliers — including a 2.2 million-tonne purchase from the US Gulf Coast — and pursuing additional diversification of LPG sources and trader arrangements.
It is all about keeping those gas cylinders coming during a pretty rocky time globally.