30 Days of West Asia Conflict: India Ups LPG Output, Focuses on PNG as Imports Concerns Persist

Why It Matters

The move safeguards India’s cooking‑fuel supply chain, limits exposure to geopolitical shocks, and supports the broader transition to cleaner natural gas, preserving economic stability and energy security.

Key Takeaways

• LPG output rose 40% to 50,000 tonnes daily
• Import requirement fell to 30,000 tonnes per day
• Government secured 80,000 tonnes LPG imports from US, Russia, Australia
• PNG connections grew to 1.6 crore households nationwide
• Cylinder allocations raised to 70% to prevent hoarding

Pulse Analysis

The month‑long flare‑up in West Asia has underscored the fragility of global energy logistics, especially for nations that depend heavily on maritime chokepoints. India sources roughly 60 % of its LPG, 47 % of LNG and a third of its crude oil through the Strait of Hormuz, exposing the country to abrupt price spikes and supply interruptions. In March 2026, Brent crude surged to $98 a barrel and Indian crude benchmarks jumped to $125.7, while JKM natural‑gas rates doubled past $20 per MMBtu. These movements tightened margins for downstream players and heightened inflationary pressure on households.

In response, New Delhi invoked the Essential Commodities Act to prioritize LPG output at refineries, achieving a 40 % production lift that now meets more than 60 % of daily demand. The government also secured 80,000 tonnes of LPG cargoes from diversified sources—including the United States, Russia and Australia—providing a buffer equivalent to a month’s supply. By raising commercial cylinder allocations to 70 % and coordinating with state authorities, officials curbed hoarding, stabilizing daily cylinder deliveries at around five million units. This multi‑pronged approach has reduced import reliance from 60,000 to 30,000 tonnes per day.

Beyond the immediate crisis, the push toward piped natural gas (PNG) signals a strategic pivot to a lower‑carbon fuel mix. City‑gas networks have expanded from 57 to over 300 service areas since 2014, and connections have leapt from 2.5 million to 16 million households, offering a viable alternative for the 60 % of LPG users who can switch. Accelerating PNG adoption not only mitigates future import shocks but also aligns with India’s climate commitments and the government’s ambition to double natural‑gas output by 2030. Analysts expect the combined effect of higher domestic LPG production and broader PNG rollout to reinforce energy security while supporting a gradual decarbonisation trajectory.