‘No need to panic’, Oil Ministry says government measures led to 25% rise in LPG production

The Oil Ministry has assured that measures undertaken by the Centre have led to a 25% increase in liquified petroleum gas (LPG) production in India, PTI reported.

In a statement on Wednesday, the ministry assured households that there is “no need to panic” while making LPG bookings. “Normal delivery cycle for domestic household remains 2.5 days,” it added.

Further, the ministry informed that crude oil is being sourced from non-Strait of Hormuz routes. The supplies secured through alternative routes are more than those that were disrupted, the report added.

"India's crude supply remains secure. Our daily consumption is about 55 lakh barrels. Through diversified procurement, the volumes we have secured today exceed what would normally have arrived through the Strait of Hormuz during this period," Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas, said at a joint press briefing.

LNG cargoes coming from two new sources, says government

“Our gas companies have procured liquified natural gas (LNG) cargoes from new sources. Two LNG cargoes are on their way to India,” Sharma added.

She stated that the government has absorbed a significant part of the cost increase to protect the consumers. "Currently, LPG is being directed to the domestic sector. For non-domestic LPG, priority is being given to essential sectors such as hospitals and educational institutions. The committee is consulting with state authorities and industry bodies to finalise the plan to ensure that available LPG is distributed fairly and transparently," Sharma noted.

Govt steps amid West Asia war

• According to Sharma, domestic refineries are currently operating at full capacity, and in some cases even above capacity, to ensure a steady supply of petroleum products across the country.
• The Centre is prioritising gas supplies for key sectors such as tea production, gas grid operations and allied activities, as well as fertiliser manufacturing, which are critical for both agriculture and industrial activity.
• To strengthen domestic availability, the government has directed refining and petrochemical units to optimise LPG production. As a result, domestic LPG production has increased by about 25%, she said.

• Additional production is being directed primarily towards household consumers to ensure uninterrupted cooking gas availability, Sharma said.
• For commercial LPG consumption, the government has identified priority sectors, including educational institutions and hospitals, to ensure essential services remain unaffected.
• Sharma urged people not to rush to book LPG cylinders. “As a temporary demand management measure, the minimum gap between LPG bookings has been increased from 21 days to 25 days,” she said.

LPG shortage in spotlight

As the commercial LPG shortage enters the third day, restaurants and hotels across cities, including Mumbai, Bengaluru and Kolkata, reported supply disruptions. Hospitality associations said supplies have become irregular in recent days, forcing some eateries to cut menus or scale down operations.

The Centre, however, has said there is no nationwide LPG crisis, adding that refineries have been directed to increase production by around 10% to stabilise supplies. The supply strain comes amid wider disruptions in global energy markets linked to tensions in West Asia.

The government has responded by invoking the Essential Commodities Act (ECA), prioritising household LPG over commercial users.

(With inputs from Agencies)