{"id":91356,"date":"2026-03-07T12:22:01","date_gmt":"2026-03-07T06:52:01","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=91356"},"modified":"2026-03-07T13:19:11","modified_gmt":"2026-03-07T07:49:11","slug":"liquefied-petroleum-gas-lpg-supply-amid-the-west-asia-crisis","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/liquefied-petroleum-gas-lpg-supply-amid-the-west-asia-crisis\/","title":{"rendered":"Ensuring Liquefied Petroleum Gas (LPG) Supply Amid the West Asia Crisis"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Liquefied Petroleum Gas (LPG) Latest News<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amid the ongoing West Asia conflict, disruptions in maritime movement through the Strait of Hormuz\u2014a crucial global energy chokepoint\u2014have threatened India\u2019s supply of Liquefied Petroleum Gas (LPG).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Given that over 80% of India\u2019s LPG imports pass through this route, the Government of India has invoked emergency provisions under the <\/span><b>Essential Commodities Act, 1955<\/b><span style=\"font-weight: 400;\"> to safeguard domestic cooking gas supplies for over 33 crore households.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Ministry of Petroleum and Natural Gas (MoPNG) has directed all oil refiners in India to maximise LPG production and prioritise domestic consumption, preventing diversion to petrochemical manufacturing.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Government\u2019s Emergency Directive<\/b><\/h2>\n<ul>\n<li><b>Invoking the Essential Commodities Act, 1955<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">The government issued the order under &#8211;\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Section 3 of the Act<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">These provisions allow the government to regulate production, supply, and distribution of essential commodities during emergencies.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Key provisions of the Order:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Refining companies must maximise LPG production.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Propane and Butane streams must be used only for LPG production.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Refiners are prohibited from diverting these streams for petrochemicals.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">All LPG produced must be supplied to public sector Oil Marketing Companies (OMCs).<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Role of public sector OMCs:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The three major OMCs responsible for domestic LPG supply are Indian Oil Corporation, Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">These companies supply almost the entire LPG demand of Indian households.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>India\u2019s LPG Demand-Supply Dynamics<\/b><\/h2>\n<ul>\n<li><b>High import dependence:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The country\u2019s LPG consumption in 2024-25 was around 31 million tonnes of LPG, of which just about 13 million tonnes was the domestic production, which translates to import dependency of around <\/span><b>58%.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The disruption in Hormuz shipping lanes therefore creates significant supply vulnerability.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Sources of LPG imports:<\/b><span style=\"font-weight: 400;\"> India traditionally imports LPG from <\/span><b>West Asian<\/b><span style=\"font-weight: 400;\"> countries such as: Saudi Arabia, United Arab Emirates, Qatar, and Kuwait.<\/span><\/li>\n<li><b>Strategic importance of the Strait of Hormuz:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/strait-of-hormuz\/\" target=\"_blank\"><strong>Strait of Hormuz<\/strong><\/a> is among the world\u2019s most critical energy <\/span><b>chokepoints<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">For India, 80% of LPG, 40% of crude oil, and over 50% of LNG imports pass through it.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Any disruption here poses serious energy security risks.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Diversifying Energy Supply Sources<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>LPG import agreement<\/b><span style=\"font-weight: 400;\">: India recently signed an LPG supply deal with the <\/span><b>United States<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Key features of the agreement: <\/b><span style=\"font-weight: 400;\">2.2 million tonnes LPG imports in 2026, around 10% of India\u2019s annual LPG imports, and supply from the US Gulf Coast. This agreement aims to reduce India\u2019s dependence on West Asian suppliers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Engagement with global traders: <\/b><span style=\"font-weight: 400;\">India is also coordinating with international traders and suppliers (Vitol, Trafigura, ADNOC Trading). The objective is to secure additional crude oil and LPG cargoes from alternative markets.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Energy Security and Strategic Reserves<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><b>Current oil and fuel stocks:<\/b><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Indian refiners currently have crude oil stocks to last around <\/span><b>25 days<\/b><span style=\"font-weight: 400;\">, and around half of these would be replenished on an ongoing basis as supply from non-Hormuz regions continues unabated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India also has<\/span><b> strategic petroleum reserves<\/b><span style=\"font-weight: 400;\"> that are currently estimated to hold crude reserves for another week or so of the country\u2019s daily oil consumption of 5.6 million bpd.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Additionally, Indian refiners have sufficient stocks of major fuels like petrol, diesel, and LPG for another 25 days\u2019 of domestic demand.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strategic Petroleum Reserves: <\/b><span style=\"font-weight: 400;\">India maintains emergency reserves at facilities such as Visakhapatnam, Mangaluru, and Padur Strategic Petroleum Reserves. These reserves act as a <\/span><b>buffer <\/b><span style=\"font-weight: 400;\">against external supply shocks.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Impact on Natural Gas and LNG Supply<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Vulnerability in LNG supply: <\/b><span style=\"font-weight: 400;\">India\u2019s cushion is thinner in the Liquefied Natural Gas (LNG) sector because LNG stockpiling is technically difficult. India is the world\u2019s <\/span><b>4th<\/b><span style=\"font-weight: 400;\">-largest LNG importer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supply disruptions: <\/b><span style=\"font-weight: 400;\">Petronet LNG Limited has issued force majeure notices to supplier (QatarEnergy), and domestic gas off-takers. QatarEnergy has also indicated a possible production halt due to the conflict.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Domestic gas allocation:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Natural gas in India is allocated based on priority sectors, including city gas distribution (PNG &amp; CNG), fertiliser industry, power sector.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">If shortages worsen, the government <\/span><b>may reprioritise<\/b><span style=\"font-weight: 400;\"> allocation to ensure supply to critical sectors.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Challenges for India<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Limited domestic LPG production<\/b><span style=\"font-weight: 400;\">: Despite large refining capacity, propane and butane production is limited.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>LNG storage constraints<\/b><span style=\"font-weight: 400;\">: Unlike crude oil, LNG storage infrastructure is limited, reducing the ability to build strategic reserves.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Global price volatility<\/b><span style=\"font-weight: 400;\">: Conflict situations often lead to spikes in energy prices, affecting fiscal stability and subsidies.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Way Forward<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Diversification<\/b><span style=\"font-weight: 400;\">: India must expand imports from the US, Africa, and Latin America to reduce reliance on West Asia.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Expanding<\/b><span style=\"font-weight: 400;\">: Strategic Petroleum Reserves (SPR) and exploring LNG storage solutions is essential.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Boosting<\/b><span style=\"font-weight: 400;\">: Domestic gas exploration and refining efficiency can increase LPG availability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Transition<\/b><span style=\"font-weight: 400;\">: Accelerating adoption of electric cooking, <a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/biogas\/\" target=\"_blank\"><strong>Biogas<\/strong><\/a> and compressed biogas (CBG), and Green hydrogen.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cooperation<\/b><span style=\"font-weight: 400;\">: Strengthening maritime security and diplomatic coordination to ensure safe sea lanes of communication (SLOCs).<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Conclusion<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government\u2019s decision to invoke emergency provisions reflects a proactive effort to safeguard India\u2019s energy security and household welfare during a volatile geopolitical situation.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While short-term measures such as maximising LPG production and diversifying imports provide temporary relief,<\/span><b> long-term resilience<\/b><span style=\"font-weight: 400;\"> will depend on energy diversification, strategic reserves, and accelerated transition to alternative fuels.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Strengthening these pillars is critical for <\/span><b>insulating <\/b><span style=\"font-weight: 400;\">India\u2019s economy and citizens from future global energy shocks.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source: <\/b><a href=\"https:\/\/indianexpress.com\/article\/business\/india-emergency-powers-boost-lpg-production-middle-east-crisis-10567792\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>IE<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid the ongoing West Asia conflict, disruptions in maritime movement through the Strait of Hormuz have threatened India\u2019s supply of Liquefied Petroleum Gas (LPG). <\/p>\n","protected":false},"author":19,"featured_media":91378,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[5896,60,22,1888],"class_list":{"0":"post-91356","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-liquefied-petroleum-gas","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affair","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/91356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=91356"}],"version-history":[{"count":5,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/91356\/revisions"}],"predecessor-version":[{"id":91438,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/91356\/revisions\/91438"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/91378"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=91356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=91356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=91356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}