The Indian government has significantly increased domestic LPG production by 36% over the past two weeks in response to ongoing supply challenges that officials describe as “worrisome” for cooking gas availability.
According to the Ministry of Petroleum and Natural Gas, this rapid boost in output aims to address heightened demand for domestic cylinders amid constrained imports. Joint Secretary Sujata Sharma highlighted efforts to encourage both household and commercial LPG users to transition to piped natural gas (PNG) wherever feasible. City gas distribution companies have introduced attractive incentives to accelerate this shift, including Indraprastha Gas offering free gas worth Rs 500 to domestic consumers in the Delhi-NCR region, Mahanagar Gas in Mumbai waiving the Rs 500 registration fee for domestic PNG connections and security deposits for commercial users, and Bharat Petroleum eliminating security deposits for all commercial connections.
While India’s crude oil supplies remain relatively stable, the LPG sector faces acute pressure due to disruptions in the Strait of Hormuz, a vital maritime route for energy shipments from West Asian nations. India relies on imports for approximately 90% of its crude, 50% of its natural gas, and 60% of its LPG requirements. A substantial portion—over half of crude imports, around 30% of gas, and 85-90% of LPG—passes through this chokepoint from West Asian sources.
Unlike crude oil, LPG lacks a strategic reserve, forcing authorities to secure supplies from alternative channels as needed. To safeguard household access, supplies to industrial users have been reduced, and commercial outlets such as hotels and restaurants face restrictions on LPG allocations.
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Petroleum Minister Hardeep Singh Puri previously indicated that India was exploring additional sources, including the US, Norway, Canada, and Russia, for LPG cargoes, though officials declined to provide specifics on recent acquisitions.
Sharma confirmed that no dealerships have reported stockouts, and measures are in place to curb hoarding and black marketing. Online booking rates for cylinders have climbed from 84% to 90%, while delivery authentication coverage has expanded from 53% to 72% to minimize diversions at the distributor level.