India Boosts LPG Allocation Amid West Asia Conflict

Increased LPG Supply to Support Key Industries

On Friday, the Indian government announced a rise in the commercial allocation of liquefied petroleum gas (LPG) to 70% of levels seen before the West Asia conflict, up from the previous 50% allocation.

This increase in non-domestic LPG supply aims to assist sectors such as steel, automobiles, and textiles, which are crucial for the economy and provide support to various essential industries. Petroleum Secretary Neeraj Mittal communicated this in a letter to the chief secretaries of all states and Union Territories.

The letter emphasized that priority would be given to process industries or those that require LPG for specialized heating that cannot be replaced by natural gas.

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, shared this decision on social media, highlighting that while many nations have implemented strict fuel conservation measures, India remains a beacon of energy security, availability, and affordability.

Earlier, the government had permitted an additional 20% allocation of commercial LPG to states and Union Territories, raising the overall allocation to 50%. Of this total, 10% is contingent upon states facilitating the expansion of the piped natural gas network.

Since the onset of the conflict in West Asia on February 28, energy supplies to India have faced disruptions. Iran has blocked the Strait of Hormuz, a critical passage for about 20% of global petroleum liquids consumption, affecting most commercial shipping.

India relies on imports for 88% of its crude oil and approximately half of its natural gas, primarily through the Strait of Hormuz.

Due to these disruptions, the government had initially reduced LPG supplies to commercial entities, prioritizing domestic needs.

The conflict escalated following a joint operation by Israel and the United States aimed at degrading Iranian capabilities, prompting Tehran to retaliate against Israel and U.S. military bases in the region, as well as targeting major cities in other Gulf nations.

While Israel has expressed concerns about Iran nearing nuclear weapon capability, Tehran insists its nuclear program is intended for civilian use.

Minister Addresses Lockdown Rumors

‘Lockdown rumours completely false’

In a separate social media update, Puri refuted rumors regarding a potential lockdown in India due to the ongoing West Asia crisis, labeling them as completely unfounded.

He clarified, “There is no such proposal under consideration by the Government of India,” and cautioned against those spreading panic-inducing rumors.

Puri noted that the global situation remains dynamic, and the government is closely monitoring developments related to energy, supply chains, and essential commodities in real-time. He assured that India has shown resilience amid global uncertainties and will continue to respond proactively and in a coordinated manner.

The minister also stated that the government is taking all necessary measures to ensure a steady supply of fuel, energy, and other critical resources for citizens.

On Thursday, the Ministry of Petroleum and Natural Gas confirmed that crude oil supplies have been secured for the next 60 days, and arrangements for LPG supplies for about a month have also been made.

The ministry reiterated that there is no LPG shortage in the country, citing a 40% increase in domestic refinery production, which has reduced the net daily import requirement to 30,000 metric tonnes.