'No Crisis': Govt Ramps Up LPG Output; 70% of India's Crude Sourcing Shifts Away from Hormuz

India has strengthened its energy supply buffers, even as tensions in West Asia continue to roil global markets, sources said while talking to Republic Media Network. Sources indicate that domestic LPG output has surged by around 10% over the last week, and crude oil imports have been diversified. 70% of supplies are now coming from routes bypassing the Strait of Hormuz, which handles over a fifth of the world’s seaborne oil.

Consignment of LPG and LNG from diversified sources is expected to arrive in the coming days. 

The measures, officials say, have allowed domestic refineries to maintain pre-conflict operating levels. Hence, insulating the country from potential energy shocks while global crude prices remain volatile.

Crude Imports: 70% Diversified, 40+ Global Sources

A strategic shift has been the diversification of India’s crude oil supply away from the Strait of Hormuz, which has been at the center of recent geopolitical tensions. Sources report that 70% of crude now comes from alternative shipping routes, compared with 55–60% previously, reducing India’s exposure to potential blockades or supply interruptions. 

India currently imports crude from over 40 international sources, spanning West Africa, Latin America, and Europe. Domestic refineries continue to operate at full capacity, thus ensuring no disruption in petroleum products despite heightened volatility in global crude markets.

Domestic LPG output has risen 10%, according to sources, with the primary focus on household consumption. Officials emphasized that the crisis stage has passed, with adequate supplies now available to meet normal demand. Exports of refined oil products remain unaffected, confirming the government’s “India First” stance on energy security.

Sources also note that the country is now in a “better prepared” position than many global peers, with robust supply buffers and diversified import channels.

Management of LPG Supply Chains

Prime Minister Narendra Modi met today with Petroleum Minister Hardeep Singh Puri and External Affairs Minister S. Jaishankar to discuss the stability of India’s LPG supply. The meeting focused on mitigating the impact of current Middle East tensions, where conflict between the US, Israel, and Iran has reached its 11th day. To protect domestic interests, the government has invoked emergency powers under the Essential Commodities Act to prioritize household cooking gas. During the meeting, sources say the Prime Minister instructed all ministers to ensure that these global disruptions do not affect the general public.

Hospitality Sector Gets Direct Government Engagement

The commercial sector, particularly hotels and restaurants, had raised alarms over commercial LPG cylinder shortages, which threatened operations in major cities. In response, the government has constituted a high-level LPG Committee comprising executive directors from Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited

The committee’s mandate includes:

• Direct engagement with hotel and restaurant associations to resolve commercial supply issues.
• Reprioritising LPG allocations to ensure genuine operational needs are met without disrupting household supply.
• Monitoring international LPG and LNG consignments arriving over the coming days.

Also read: Essential Commodities Act: HPCL Bolsters LPG Production Amid Iran War