Govt orders oil refiners to increase LPG production:Centre’s move to ensure ample cooking gas supply preventing possible price hike

The Central Government has ordered oil refineries to make as ramp up production of Liquefied Petroleum Gas (LPG), according to news agency, Reuters. This decision comes after problems in the West Asia have disrupted the supply of Liquefied Natural Gas (LNG) to India. Why This Matters? India is a major consumer of LPG. Last year, the country used over 33 million tons of it. A large portion of this gas is imported, with most of it coming from the Middle East. Because of the current situation in that region, there are concerns that India might not get enough LPG. Refineries Told to Prioritize LPG The government’s order means that refineries must use all available ingredients of LPG to produce cooking gas. They need to supply this gas to major state-owned companies like Indian Oil, Hindustan Petroleum, and Bharat Petroleum, which then distribute it to households. India has a massive consumer base of around 332 million (33.2 crore) LPG users. Ensuring Stable Supply The government has taken this decision to make sure there’s enough cooking gas for everyone, even if it means some other industries take a hit. This action highlights how important a stable LPG supply is for Indian households and the government’s commitment to ensuring it. What is LPG? This particular gas is what most people use for cooking in their homes. Background: Earlier, the Liquefied Natural Gas (LNG) prices in the Asian markets had surged to the highest level in three years after world’s biggest producer of liquefied gas, QatarEnergy had suspended production following Iranian strikes on its LNG facilities. Qatar LNG production halt led to 40% supply cut of India LNG imports LNG production halt at Qatar facility earlier had disrupted supplies to India. India depends on long-term LNG contracts with Qatar for a significant share of its gas needs. The temporary suspension of cargoes had led to supply cuts of up to 40% for a range of industrial consumers and city gas distribution (CGD) companies in India.