On March 6, 2026, the Ministry of Petroleum and Natural Gas of India issued a directive to oil refining companies to maximize the production of liquified petroleum gas (LPG) for domestic consumers. This move aims to ensure a steady supply of cooking gas amid global disruptions due to the ongoing conflict in West Asia.
The directive mandates that oil refiners in India focus on utilizing propane and butane streams solely for LPG production. These products must be supplied to the three major public sector oil marketing companies: IndianOil, Hindustan Petroleum, and Bharat Petroleum. The order explicitly prohibits the diversion of these streams for petrochemical manufacturing or other derivatives.
This strategic shift comes in the wake of increasing global fuel supply challenges. By prioritizing domestic LPG production, India seeks to safeguard its citizens against potential shortages. The Ministry’s order is a direct response to the geopolitical tensions affecting global energy markets.
Looking forward, the Ministry’s decision is expected to stabilize the domestic LPG market. Continued monitoring of the global situation will be crucial, and further adjustments may be necessary depending on the conflict’s progression.
Published in SouthAsianDesk, March 6th, 2026
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