Last Updated:March 06, 2026, 18:20 IST

India has ordered oil refiners to increase LPG production to safeguard energy supplies, prioritising LPG, amid West Asia tensions.

Amid rising tensions in West Asia, the Indian government has asked both public and private oil refiners to increase the production of Liquefied Petroleum Gas (LPG), which is widely used as cooking fuel across the country.

According to official sources cited by Money Control, refiners have been instructed to prioritise LPG output and avoid diverting key raw materials for other petrochemical products.

“Indian government has passed an order to all public and private refiners to produce more LPG and not divert or utilise propane and butane for other petrochemical products," sources told Money Control.

The directive has been issued by invoking emergency powers under the Essential Commodities Act, 1955, which allows the government to direct companies to increase production of essential commodities during potential supply shortages.

Under the order, oil refining companies must ensure that propane and butane — the main components used to produce LPG — are utilised entirely for LPG manufacturing. The fuel produced must then be supplied only to the three public sector oil marketing companies: Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL).

The March 5, 2026 order also states that refiners must not divert propane or butane streams for the manufacture of petrochemical products or other derivatives. Authorities warned that any violation of the directive could invite action under the Essential Commodities Act, 1955, the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999, and other applicable laws.

The order has come into effect immediately and will remain in force until further instructions from the central government.

Officials said India currently remains in a comfortable position regarding crude oil, refined products and LPG availability. They added that the country has substantial refining capacity and can adjust production priorities if necessary.

However, experts note that tensions in the Middle East could impact India’s energy supply chain. Around 80–85 per cent of the country’s LPG demand is met through imports, most of which come from Gulf nations and pass through the Strait of Hormuz.

Analysts say that while crude oil imports can be managed through strategic reserves and alternative supplies such as those from Russia, LPG supply chains are more vulnerable because sourcing options are limited.

Data from the Petroleum Planning and Analysis Cell shows that India imported 18.79 million metric tonnes of LPG between April and January of the financial year 2025–26, compared with 17.2 million tonnes during the same period in the previous year.

During this period, LPG consumption stood at around 28 million tonnes, while total consumption in FY25 was 31.3 million tonnes.

News india Amid West Asia War, India Invokes Emergency Law To Push Refiners To Raise LPG Output

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