LPG Production in India: Centre Orders Refiners to Maximise Output

Context:
The Centre invoked the Essential Commodities Act, 1955 to direct refiners to prioritise LPG production for domestic cooking needs amid supply concerns linked to West Asia disruptions.

Key Data

• Government ordered refiners to maximise LPG production and prioritise domestic supply.
• Refiners instructed not to divert propane–butane streams for petrochemicals or other derivatives.
• LPG is mainly a mixture of propane and butane.
• Production can be increased by rebalancing refining streams.

• Around 60% of India’s LPG is imported, mainly from Persian Gulf countries such as Saudi Arabia and Qatar.
• Domestic refineries produce roughly 40% of India’s LPG requirement.
• Disruption in the Strait of Hormuz may affect LPG imports and logistics.

Essential Commodities Act — Provision Used

• Action taken under Section 3 of the Essential Commodities Act, 1955.
• Section 3 empowers the Centre to regulate production, supply, distribution and pricing of essential commodities to ensure availability and prevent hoarding.

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