India Boosts LPG Output to Protect Domestic Supply

The federal government in India has issued an urgent appeal to consumers to remain calm and conserve energy as the country faces significant challenges in meeting domestic fuel demand. As the world's second-largest importer of liquefied petroleum gas, the government has invoked emergency powers to mandate that refiners prioritize household supplies over industrial sales to support approximately 333 million homes. These disruptions stem from escalating geopolitical tensions involving the United States, Israel, and Iran, which have effectively halted maritime traffic through the critical Strait of Hormuz. Consequently, the availability of Dorian LPG Ltd. and Cheniere Energy, Inc. has been constrained, affecting a nation that imports roughly 60% of its cooking gas and half of its total natural gas consumption. Sujata Sharma, a joint secretary in the federal oil ministry, noted that while local production has been boosted by 25%, misinformation has led to unnecessary consumer anxiety. > Panic booking and hoarding behaviour have been driven by misinformation. The supply of natural gas has been particularly affected by a force majeure declared by Qatar, previously the top supplier to the region. In response, the government has begun redirecting gas from non-priority sectors to key users. Furthermore, Indian refiners have capitalized on a 30-day sanctions waiver from Washington to purchase millions of barrels of oil from Russia currently at sea. Despite these hurdles, officials maintain that most refineries are operating at full capacity and that alternative sources are being secured, with new cargoes already in transit. > The Government is continuously monitoring the global situation and taking necessary steps to ensure uninterrupted fuel supplies and protect households and priority sectors.