Government Prioritises Domestic LPG Supply Amid Middle East Oil Disruption
India buys crude oil from 40 countries, prioritises domestic LPG amid Hormuz conflict, says government sources.
Amid disruptions in the Middle East, the Indian government has diversified its crude oil imports and is now sourcing oil from 40 countries, officials told NDTV on Tuesday, seeking to reassure consumers amid concerns over an LPG shortage. Government sources emphasized that domestic consumers remain the top priority, and supplies to households will be safeguarded even in situations where commercial demand competes for resources.
“Interest of domestic consumers is paramount. If there is a choice between commercial and domestic consumers, preference will be given to domestic consumers,” the sources said. They added that crude oil imports from non-Hormuz sources have steadily increased, rising to 70% of total imports from 50% ten days ago.
The sources also addressed the ongoing LPG situation, clarifying that domestic production has increased by 10% in the past two days. They noted that the recent Rs 60 hike in LPG cylinders was pre-decided and is not linked to the current Middle East conflict. Distribution of domestic LPG cylinders continues at around 60 lakh units daily, as before the disruption, with the current supply gap attributed to panic buying in certain areas.
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Officials further said that while commercial LPG supplies may face temporary delays, there are no indications of hoarding or deliberate disruption. Emergency powers have been invoked to prioritize households, ensuring that the majority of domestic users—who account for 87% of India’s annual LPG consumption of 31.3 million tonnes—receive uninterrupted service. Currently, around 62% of LPG demand is met through imports, which the government is now actively diversifying to mitigate risks.
The crisis comes in the wake of an 11-day-old conflict in Iran that has disrupted fuel shipments through the Strait of Hormuz, a key chokepoint for global oil and gas flows. Indian authorities are working closely with industry players to maintain supply continuity and protect ordinary consumers from the impact of international tensions.
Government sources expressed cautious optimism, stating that if the current trends in production and distribution continue, India will soon reach a “comfortable position” regarding LPG availability, minimizing any disruption to household energy needs.
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