India has activated emergency measures requiring domestic refiners to ramp up liquefied petroleum gas (LPG) production, aiming to stave off a potential shortfall in cooking gas following supply challenges linked to instability in the Middle East.
During the previous year, India used 33.15 million metric tons of LPG, mainly as cooking fuel. About two-thirds of that volume was sourced through imports, with the Middle East providing as much as 90% of external supply, underscoring India’s reliance on the region.
Refiners must also prioritize delivering LPG, along with its primary components propane and butane, to major state-run firms including Indian Oil Corp, Hindustan Petroleum Corp, and Bharat Petroleum Corp. These companies are responsible for distributing cooking gas to an estimated 332 million active accounts nationwide.
In addition, the new order restricts the diversion of propane and butane for use in petrochemical manufacturing, a rule affecting companies such as Reliance Industries Ltd. The company, according to LSEG data, regularly exported up to four shipments of alkylates monthly last year, a practice now hampered by the revised supply priorities.
Nonetheless, there is still some positive development as the U.S. recently announced a temporary waiver allowing India to import Russian oil. The measure was issued on March 5 and will expire on April 4 at 12:01 A.M. local time. U.S. Treasury Secretary Scott Bessent stated that the waiver is only a short-term measure and will not deliver significant financial benefits to Russia.
