LPG production in the country increases by 10% amid fuel crisis, reduction in gas supply to industries
India has increased its LPG production by 10% in response to a fuel crisis caused by ongoing tensions in West Asia and disruptions in LNG supply.
Amid the ongoing tension in West Asia and disruptions in LNG supply through the Strait of Hormuz, the Indian government has made significant changes to its domestic gas allocation system. As per the new notification, LPG production units are now prioritized in the allocation process. Prime Minister Narendra Modi held a critical meeting in Parliament with Petroleum and Natural Gas Minister Hardeep Singh Puri and Foreign Minister S. Jaishankar to assess the crisis sparked by the conflicts in Iran affecting global oil and gas supplies.
According to governmental sources, the production of LPG in oil refineries has increased by nearly 10 percent, with all refineries operating at 100 percent capacity. To control the situation, the government has stated that the Essential Commodities Act has been enforced, as opposed to the Essential Services Maintenance Act. This strategic move is part of the government's efforts to mitigate the crisis and ensure a steady energy supply amidst the international market fluctuations.
The Indian government claims that the country's energy supply situation is more resilient compared to that of many other nations. It remains in continuous communication with multiple countries to secure energy supplies, reflecting Indiaโs proactive approach in navigating the complexities of the current fuel crisis. This response indicates a concerted effort to bolster domestic production capacities while addressing the pressing challenges posed by international issues in the energy market, ensuring that essential supplies remain uninterrupted for both households and industries.