Govt Boosts LPG Output 25%

New Delhi, March 12: The Centre has increased domestic LPG production by about 25% and is directing the entire output toward household consumers to ensure uninterrupted cooking gas supply amid evolving developments in West Asia.

According to the Ministry of Petroleum and Natural Gas, an order issued on March 8 asked refineries and petrochemical complexes to maximise LPG production to maintain supply stability.

Officials said India imports nearly 60% of its LPG requirements, with around 90% of those imports typically passing through the Strait of Hormuz, which has been affected by recent geopolitical tensions.

To safeguard essential supplies, priority is being given to domestic households, while non-domestic LPG is being reserved for critical sectors such as hospitals and educational institutions.

A three-member committee comprising executive directors from Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited has been formed to review LPG allocations to commercial establishments including restaurants and hotels.

The government said the price of a domestic LPG cylinder in Delhi currently stands at ₹913 following a recent ₹60 increase. However, beneficiaries under the Pradhan Mantri Ujjwala Yojana continue to pay ₹613 per cylinder.

Officials added that the recent price hike translates to less than 80 paise per day for a PMUY household. To support oil marketing companies, the government has approved ₹30,000 crore in compensation for LPG under-recoveries.

Authorities also noted instances of panic booking and hoarding, though the normal delivery cycle remains around two-and-a-half days.

To curb diversion at the distributor level, the Delivery Authentication Code system is being expanded to cover about 90% of LPG consumers. As a temporary measure to manage demand, the minimum gap between LPG bookings has also been raised from 21 days to 25 days.

Officials said India’s crude oil supply remains secure as the country imports oil from nearly 40 nations, with about 70% of crude shipments now arriving through routes outside the Strait of Hormuz.