New Delhi: The government is taking several measures to reduce LPG import dependence and enhance energy security over the medium to long term, minister of state for environment Suresh Gopi informed the Lok Sabha on Thursday in a written response. As part of a strategy to diversify LPG imports, PSU oil marketing companies have recently concluded contracts for import of approximately 2.2 million metric tonnes (MMT) of US-origin LPG for 2026, covering nearly 10% of the country’s total LPG import requirement, the Lok Sabha was told. (Representational image) (Sansad TV)
These include prioritising piped natural gas (PNG) and renewable energy development, including solar, wind, bioenergy and green hydrogen.
Further, as part of a strategy to diversify LPG imports, PSU oil marketing companies have recently concluded contracts for import of approximately 2.2 million metric tonnes (MMT) of US-origin LPG for 2026, covering nearly 10% of the country’s total LPG import requirement, he said.
Gopi was responding to questions by Rajya Sabha MP Amar Singh on: (1) whether the government has assessed the impact of global energy supply disruptions and geopolitical tensions in West Asia on LPG imports and domestic availability; (2) the initiatives undertaken to manage LPG supply chains, including measures to enhance domestic production and regulate distribution among consumer categories; and (3) steps proposed to strengthen LPG supply resilience and prevent future shortages.
In the short term, to boost domestic LPG production for current usage, the Centre on March 9 issued directions to all oil refining companies, including petrochemical complexes, that the entire output of C3 and C4 hydrocarbon streams—such as propane, butane, propylene and butenes—be utilised exclusively for LPG production and supplied only to public sector oil marketing companies. Refineries were also instructed not to divert these streams for manufacture of petrochemical products or downstream derivatives, Gopi said.
OMCs have been directed to ensure that the LPG produced is supplied exclusively to domestic consumers. As a result of these initiatives, domestic LPG production has increased by 40%.
While domestic LPG supplies have been prioritised, commercial LPG supplies were initially impacted. Subsequently, the government restored partial supplies of 20% to commercial consumers, which was later enhanced to an overall allocation of 50%, including 10% linked to PNG expansion reforms, he said.
This allocation has been prioritised for key sectors such as restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidised canteens run by state governments or local bodies, community kitchens, and 5 kg FTL cylinders for migrant labourers.
“India imports about 60% of its LPG consumption, out of which about 90% transits through the Strait of Hormuz. In view of the ongoing geopolitical developments in West Asia, the availability of imported LPG in the country has been impacted. The government has undertaken a series of proactive measures to ensure stability in LPG supplies. These include prioritization of domestic LPG consumption, diversification of import sources, dynamic stock management, and inter-regional allocation to address localized shortages,” Gopi said.
Further, city gas distribution (CGD) entities have been advised to prioritise the provision of PNG connections to commercial establishments such as restaurants, hotels and canteens across their authorised geographical areas to address concerns relating to the availability of commercial LPG.
“Government has requested all Central Government Ministries/Departments to carry out a comprehensive assessment of the potential demand for PNG connections in establishments under their jurisdiction, and to designate a nodal officer in each Ministry/Department to coordinate this exercise. Pursuant to the aforesaid directions, the Petroleum and Explosives Safety Organisation (PESO) has instructed all its offices to accord priority to CGD-related applications and ensure their disposal within 10 days of receipt,” Gopi said.
“In addition, emphasis is being laid on renewable energy development, including solar, wind, bioenergy and green hydrogen, alongside implementation of energy efficiency measures across sectors. Ethanol blending and other biofuels are also being promoted to reduce import dependence and enhance energy sustainability,” he said.
“Strategically, diversification of LPG imports is being pursued to ensure supply security and mitigate risks arising from regional disruptions or geopolitical events. As part of this strategy, PSU OMCs have recently concluded contracts for the import of approximately 2.2 Million Metric Ton (MMT) of US-origin LPG for the calendar year 2026, covering nearly 10% of the country’s total LPG import requirement. This marks a significant step in strengthening India’s energy resilience by establishing a reliable alternate LPG supply source outside the traditional Arab Gulf region,” the response added.