Top News

India recently faced significant gas shortages due to blockages near the Strait of Hormuz. Consequently, the country has ramped up LPG production to ensure such issues do not arise in the future.

Gas supplies have been disrupted since tensions escalated between Iran and the US; the movement of gas through the Strait of Hormuz remains affected. To mitigate this, Indian oil agencies have devised a new strategy. Indian Oil Corporation (IOC) has increased domestic LPG production by approximately 30 percent, with its refineries operating beyond their standard capacity levels.

Increase in domestic LPG production

India imports a large portion of its LPG requirements. However, with transit through the Strait of Hormuz currently disrupted, any interruption in foreign supplies could directly impact the domestic market. To tackle this challenge, IOC has prioritized increasing LPG production at its refineries.

According to the company’s chairman, production has risen by about 30 percent. Refineries are operating at over 100 percent capacity to ensure a steady fuel supply across the country. In March, the government directed refineries to prioritize LPG production, leading to an increase in daily domestic output from approximately 35,000 tonnes to 54,000 tonnes.

Increased supplies from other nations

India has also diversified its import sources to avert LPG shortages. Oil companies are seeking supplies from countries beyond the Gulf region. Notably, India has signed an agreement to import approximately 2.2 million tonnes of LPG annually from the United States.

Refining operations accelerated

IOC has not only boosted LPG production but is also operating its refineries at high capacity. The company aims to maintain an adequate supply of essential fuels—including petrol, diesel, and LPG—for the domestic market. The company’s move comes at a time when global energy supplies are under pressure due to ongoing tensions in the Strait of Hormuz. This route is crucial for the global oil and gas trade.