The Indian government has implemented several measures to reduce LPG import dependence and enhance energy security over the medium to long term.
The measures include prioritizing piped natural gas (PNG) and renewable energy development, including solar, wind, bioenergy and green hydrogen.
As part of a strategy to diversify LPG imports, PSU oil marketing companies have concluded contracts for the import of approximately 2.2 million metric tonnes (MMT) of US-origin LPG for 2026, covering nearly 10% of the country's total LPG import requirement.
Domestic LPG production has increased by 40% as a result of these initiatives, with the Centre directing oil refining companies to utilize the entire output of C3 and C4 hydrocarbon streams exclusively for LPG production.
Commercial LPG supplies were initially impacted, but the government has since restored partial supplies to commercial consumers, prioritizing key sectors such as restaurants, hotels, and industrial canteens.
The government has also advised city gas distribution entities to prioritize the provision of PNG connections to commercial establishments and has requested Central Government Ministries to assess the potential demand for PNG connections.
Emphasis is being laid on renewable energy development and energy efficiency measures across sectors, with a focus on reducing import dependence and enhancing energy sustainability.
