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Govt Channels Entire Rise in LPG Production to Households: Nirmala Sitharaman

Govt Channels Entire Rise in LPG Production to Households: Nirmala Sitharaman

New Delhi, March 18: Finance Minister Nirmala Sitharaman on Tuesday said the entire 25 per cent increase in India’s domestic liquefied petroleum gas (LPG) production is being supplied to households as cooking gas to maintain stable availability.

Speaking in the Rajya Sabha, Sitharaman noted that about 65 per cent of India’s LPG consumption is met through imports, with nearly 90 per cent of those shipments passing through the strategically critical Strait of Hormuz. Despite the geopolitical tensions in West Asia, she said the government is ensuring uninterrupted fuel supplies and that there is no energy shortage in the country.

To offset disruptions in imports, domestic refineries have increased output, according to the Ministry of Petroleum and Natural Gas. The ministry said LPG supply is being closely monitored and no “dry-outs” have been reported at distributor outlets across the country.

The government has also expanded the Delivery Authentication Code (DAC) system to prevent diversion of LPG cylinders, increasing its coverage from 53 per cent before the crisis to around 72 per cent. Online bookings for LPG cylinders have also increased from about 84 per cent to nearly 90 per cent, enabling more orderly distribution to consumers.

Meanwhile, two Indian-flagged LPG carriers — MT Shivalik and MT Nanda Devi — carrying around 92,712 metric tonnes of LPG recently crossed the Strait of Hormuz before reaching India. Major ports have been directed to prioritise berthing for LPG vessels to ensure timely unloading and maintain energy supply continuity.

Highlighting the broader economic outlook, Sitharaman said India’s economy remains resilient despite the conflict in the Middle East. She added that the government has increased capital outlay for infrastructure projects — including highways, ports and railways — to ₹12.2 lakh crore to support growth and job creation.

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