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Ramping up domestic LPG output: FM

Business Standard

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March 18, 2026

LPG supply remains a concern for India as Iran intensifies Gulf energy attacks and its supreme leader rejects de-escalation. Amid setbacks, Trump says the US will leave Iran operation in 'very near future'

- BS REPORTERS

Union Finance Minister Nirmala Sitharaman on Tuesday said the domestic production of liquefied petroleum gas (LPG) was being ramped up to ensure cooking-gas supply to households during turbulent times amid the West Asia crisis, while officials and industry sources signalled mounting pressure on fuel and fertiliser supply chains.

Replying to a debate on the second batch of supplementary demands for grants in the Rajya Sabha, Sitharaman said India had taken steps to maintain supply despite its reliance on imports.

"Overwhelmingly, 90 per cent of the 65 per cent LPG imports come through the Strait of Hormuz. As a result, there was speculation about whether we would get it or not. There are enough reports on how we are ensuring a steady flow during these turbulent times," she said.

The Strait of Hormuz, a vital global shipping artery, has been blocked since the start of the war between the US-Israel and Iran.

She added that domestic capacity had been increased by diverting refinery streams such as propane and butane towards LPG production.

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