The Ministry of Petroleum and Natural Gas has ordered all oil refining companies operating in India to maximise the use of propane and butane streams for LPG production. This LPG will be supplied exclusively to domestic consumers through IndianOil, Hindustan Petroleum, and Bharat Petroleum. The directive aims to protect household users amid global fuel supply challenges arising from the ongoing conflict in West Asia.
The Ministry of Petroleum and Natural Gas (MoPNG) issued an order on March 5 directing all oil refining companies operating in India to maximise production of propane and butane streams for LPG utilisation. These streams must be made available to the three public sector oil marketing companies—IndianOil, Hindustan Petroleum, and Bharat Petroleum—which will market the LPG solely to domestic consumers.
The order explicitly prohibits refining companies from diverting, utilising, processing, cracking, converting, or otherwise employing propane or butane for petrochemical products or other downstream derivatives. LPG, a cooking fuel composed of propane and butane, is to be prioritised for household use.
This measure comes amid a shifting global fuel supply landscape due to the ongoing conflict in West Asia, including the Iran-US and Iran-Israel wars, which are impacting oil prices and supplies in India. The ministry's goal is to safeguard LPG availability for domestic consumers.
