The Indian government is taking steps to reduce the country's dependence on imported Liquefied Petroleum Gas (LPG) and enhance energy security. Minister of State for Environment Suresh Gopi informed the Lok Sabha that India imports about 60% of its LPG needs, with nearly 90% transiting through the Strait of Hormuz, making the country vulnerable to disruptions.
To address this, the government has directed refineries to channel key hydrocarbon streams exclusively toward LPG production, boosting domestic output by 40%. Additionally, public sector undertaking (PSU) oil marketing companies have secured contracts to import 2.2 million metric tonnes of LPG from the United States in 2026, marking a shift away from traditional Gulf suppliers.
The Centre is also promoting cleaner energy sources, including solar, wind, bioenergy, and green hydrogen, alongside ethanol blending and efficiency measures. City gas distribution (CGD) entities have been advised to prioritize providing piped natural gas (PNG) connections to commercial establishments, with a view to addressing concerns relating to the availability of commercial LPG.
Strategically, diversification of LPG imports is being pursued to ensure supply security and mitigate risks arising from regional disruptions or geopolitical events. The PSU OMCs' recent contracts for the import of US-origin LPG for 2026 cover nearly 10% of the country's total LPG import requirement, marking a significant step in strengthening India's energy resilience.
