India orders refiners to boost LPG production amid Middle East supply risks

NEW DELHI, March 6, 2026 – India has invoked emergency powers and ordered oil refiners to maximise production of LPG to avert a cooking fuel shortage following supply disruptions linked to the Middle East crisis, Reuters reported on Friday.

The government directed refiners to ensure propane and butane supplies are fully utilised for LPG output and to make these fuels available to state refiners Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp for household distribution. India consumed 33.15 million tonnes of LPG last year and imports account for about two-thirds of demand, with roughly 85–90% sourced from the Middle East, per the report.

Authorities also ordered refiners not to divert propane and butane to petrochemicals production, a move expected to reduce output of higher-value products such as polypropylene and alkylates. The shift could affect companies such as Reliance Industries, which exported about four cargoes per month of alkylates last year.

Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp are state-controlled energy companies that dominate India’s fuel marketing and refining sector, operating large refining networks and nationwide fuel distribution systems.

Reliance Industries is one of India’s largest private-sector energy groups, operating the Jamnagar refining and petrochemicals complex and exporting petroleum products and petrochemicals globally.

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