India Says Fuel Stocks Are Adequate, Yet Refineries Told to Increase LPG Production

In Shorts

• India says it has enough crude oil and fuel stocks to meet domestic demand.
• Refineries have been directed to increase LPG output to safeguard cooking gas supply.
• The decision comes amid concerns over global energy disruptions linked to tensions in West Asia.

India has assured that it currently has sufficient fuel reserves to meet domestic demand, but authorities have still directed oil refineries to increase the production of liquefied petroleum gas (LPG). The step is being taken as a precaution to ensure uninterrupted cooking gas supply across the country.

Government sources stated that India’s stock of crude oil, petrol, diesel and LPG remains adequate. Officials emphasised that the country is in a “very comfortable position” in terms of fuel availability and has access to multiple energy sources beyond those currently affected by global tensions.

The directive to boost LPG output is largely linked to concerns about potential disruptions in global oil supply chains. Ongoing geopolitical tensions in West Asia have raised fears about shipping through the Strait of Hormuz, a key maritime route used for transporting crude oil and gas to several countries, including India.

To prevent any shortage of cooking gas, the government has instructed all oil refineries operating in the country to maximise the use of propane and butane streams for LPG production. These gases are commonly used as feedstock in petrochemical manufacturing, but authorities have asked refiners to prioritise domestic LPG supply instead.

Officials said the goal is to ensure steady availability of LPG cylinders for households. India is among the world’s largest consumers and importers of LPG, and a significant share of its supply traditionally comes from the Middle East.

The government is also working on diversifying energy imports and exploring alternative sources of supply to reduce dependence on any single region. According to sources, India can increase imports from other countries if disruptions occur, helping maintain stable fuel availability.

Experts say the move reflects a precautionary approach to energy security. Even though the country has adequate reserves, increasing domestic LPG production will help protect millions of households that rely on cooking gas every day.