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Informist, Friday, Mar. 6, 2026

 

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--Govt source: Opened LPG imports from other nations, 10% coming from US 
--Govt source: Asked oil refiners, OMCs to re-prioritise LPG usage 
--Govt source: No Indian consumer to be impacted by LPG supply issue 
--Govt source: Asked oil refiners, OMCs to re-prioritise LNG usage 
--Govt source: No Indian consumer to be impacted by LNG supply issue 
--Govt source: Have huge refining capacity, to produce more LPG if needed 
--Govt source: Told oil cos to produce more LPG 
--Govt source: Will take more steps to ensure sufficient domestic LPG supply 
--Govt source: India picking up more LNG from nations outside Gulf region 
--Govt source: In talks with Qatar to lift force majeure order soon 
--Govt source: India has more energy stocks than is stuck at Strait of Hormuz 
--Govt source: Expect Strait of Hormuz disruption to clear soon 
--Govt source on US allowing Russia oil imports: India takes own decisions 
--Govt source: In comfortable position, importing energy from 27 nations 
--Govt source: Asked cos to divert LPG used for petchem towards domestic use

 

NEW DELHI – Amid supply disruptions due to the war in West Asia, the Centre has asked domestic refiners to boost production of liquefied petroleum gas and re-prioritise its supply towards domestic consumption from petrochemical production, a senior government official said Friday. The government would take further steps to ensure sufficient supply of the cooking fuel, the official said. "India was most vulnerable to LPG shortage following the war, but now it is comfortable," the official added. 

 

According to the official, 40% of India's LPG supply comes through the Strait of Hormuz, and the equivalent quantity – impacted by the closure of the strait – is being "beefed up" from other sources. 

 

India currently faces fresh geopolitical risks after Israel and the US launched joint military strikes on Iran Saturday, prompting retaliation from Tehran. Iran's Supreme Leader, Ayatollah Ali Hosseini Khamenei, and several of the country's top military leaders were killed in the first wave of attacks by Israel and the US. Iran has since retaliated against Israel and also targeted US military installations around the Persian Gulf.

 

Iran has also shut the Strait of Hormuz, a narrow waterway that connects the Persian Gulf to the Indian Ocean, resulting in a sharp jump in prices of crude oil and natural gas. A fifth of the global crude oil supply flows through the Strait of Hormuz. About half of India's crude oil imports – primarily from Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait – also pass through the strait, making the country particularly vulnerable to shipping bottlenecks there and to surging freight and insurance rates.

 

India imported large volumes of liquefied petroleum gas from West Asia in 2025, representing 46.9% of its LPG imports. LPG remains the primary cooking fuel for millions of households and any disruption could quickly affect cooking fuel availability. The official also said the control order to divert usage of LPG to ensure domestic availability extends to private companies as well. "The government will take more steps to ensure availability, if necessary." 

 

The official added that India was buying 10% of LPG demand from the US, and would diversify to more nations if the need arose. "India also has enormous refining capacity...will produce more LPG if needed."

 

On liquefied natural gas, the official said India is procuring the fuel from countries outside the Gulf region and is not worried about a shortfall in supply. In 2025, India imported $9.2 billion worth of LNG from West Asia, accounting for 68.4% of its LNG imports. To that extent, the official said the force majeure notice from LNG supplier QatarEnergy prompted Petronet LNG Ltd. to issue force majeure notices to its off-takers such as GAIL (India) Ltd., Indian Oil Corp. Ltd., and Bharat Petroleum Corp. Ltd., and it might be lifted soon. "India is discussing the issue with Qatar too," the official said. 

 

The top official said overall, India is comfortably positioned in terms of its energy supply, with energy flowing in from 27 countries. "The diversification is fuelled by energy availability." India also has more fuel stocked than what is stuck in the Strait of Hormuz, the official said, allaying fears. Besides, the government expects the disruption in the Strait of Hormuz to clear up soon, the official added.

 

As tensions escalated, crude oil prices have risen sharply, breaching $89 a barrel from less than $70 a barrel on Feb. 27, before the attack happened. For India, which imports over 85% of its crude oil, a rise in oil prices threatens higher inflation and higher trade deficit.

 

Amid all the disruptions, US Treasury Secretary Scott Bessent said Friday that Washington was issuing a 30-day waiver to allow Indian refiners to buy Russian oil. India's oil procurement from Russia, which has sharply gone up since 2022, has both shielded the economy from higher prices and drawn the US' steep punitive tariffs. 

 

According to the government official, India will continue its trade with Russia – particularly its oil procurement – simply based on domestic needs. "India takes its own decisions and is answerable to its consumers," the official said.   End

 

US$1 = INR 91.74

 

Reported by Priyasmita Dutta

Edited by Avishek Dutta

 

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