Government Boosts Domestic LPG Production to Ensure Household Supplies

Government Ensures Domestic LPG Supplies Amid West Asia Crisis

The Indian government has taken steps to ensure a stable supply of cooking gas to households, despite disruptions in imports due to the ongoing war in West Asia. Finance Minister Nirmala Sitharaman stated that domestic production of LPG is being ramped up to meet the country's requirements.

India imports approximately 65% of its LPG needs, with 90% of these imports coming from the Strait of Hormuz. To mitigate the impact of the crisis, the government has directed oil refineries and petrochemical complexes to maximize LPG production by diverting propane, butane, propylene, and butane streams to the LPG pool. As a result, domestic LPG production has increased by 25%, with the entire output going to domestic consumers.

The government has also ensured that households will not suffer due to the crisis. Domestic supplies will be adequately streamlined, and supplies will remain steady, according to the minister. The ability to ramp up LPG production overnight is a result of the government's steady policy approach and decade-long energy transition strategy launched by the Prime Minister in 2014.

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India has a sufficient availability of fertilizers for the upcoming Kharif season, and the government will soon begin bidding to import crop nutrients for the winter Rabi crop. Additionally, the government will be clearing Rs 1.48 lakh crore in oil bonds issued during the UPA government to oil marketing companies in lieu of cash subsidies on petroleum products.

The minister also highlighted the country's progress in developing its power sector, with the installed power generation capacity more than doubling since 2014. Non-fossil electricity now accounts for 52% of the total capacity, surpassing fossil fuel capacity for the first time in Indian history.

The government's proposed Economic Stabilisation Fund will provide fiscal headroom for India, enabling the country to respond to global headwinds, such as the recent crisis. The fund will provide a buffer against potential economic shocks, allowing the government to mobilize resources when needed.