West Asia conflict: Centre orders refineries to boost LPG production for domestic use

Mar 09, 2026

New Delhi [India], March 10 : Amid ongoing West Asia tensions affecting global fuel supply, the Central government has instructed oil refineries across the country to increase LPG production. The additional output will be diverted to meet domestic household demand and help stabilise supply in the coming months, the Ministry of Petroleum and Natural Gas announced on Monday.
In a post on X, the ministry said oil refineries have been directed to enhance LPG production and prioritise the additional output for household consumption.
"In light of current geopolitical disruptions to fuel supply and constraints on the supply of LPG, the Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," it said.
The ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing.
"Non domestic supplies from imported LPG is being prioritised to essential non domestic sectors such as Hospitals and Educational institutions," it said.
https://x.com/petroleummin/status/2031058085952000251
"For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," the Ministry added.
Government sources said the extension of the booking gap from 21 to 25 days was introduced after authorities noticed unusual consumption patterns. "There were instances that people who were earlier booking LPG cylinders in 55 Days have started booking cylinders in 15 days," sources said.
Despite global market volatility, officials maintained that there is no immediate concerns regarding petrol and diesel availability in the country. Fuel prices are unlikely to increase unless crude oil prices rise beyond USD 130 per barrel, sources said, adding that India currently has adequate fuel reserves.