India’s LPG Supply

NEWS: Even after the increase in production, around half of India’s LPG demand must still be met through imports.

ABOUT

  • LPG (Liquefied Petroleum Gas) is a mixture of hydrocarbon gases, mainly: Propane, Butane
  • It is widely used in India for: Cooking fuel (domestic cylinders), Commercial kitchens, Industrial applications

India’s LPG Production and Consumption

  • Productionà In 2024–25, India produced about 13 million tonnes of LPG.
  • Consumptionà India consumed about 31 million tonnes of LPG in the same year.
  • Result Domestic production meets only about 40% of demand.
  • Therefore: About 60% of LPG demand is met through imports.

Sources of Domestic LPG Production

  • Crude Oil Production: Some LPG is naturally present in crude oil and is separated during the refining process.
  • Oil Refineries: Produce LPG through Fluid Catalytic Cracking Units (FCCU).
  • FCCU Process: Heavy fractions of crude oil are cracked into lighter products.
    • These lighter products include: LPG, Petrol, Other petroleum products
  • Petrochemical Processing: During petrochemical refining, LPG and propylene are produced.
  • Propylene is used to make polypropylene, which is important for plastics and synthetic rubber.

Government Measures

The government has directed refining companies to:

  • Ensure propane and butane are not diverted excessively for petrochemical manufacturing.
  • Prioritise LPG production for domestic consumption.
    • This helps maintain adequate supply for cooking gas.

Key Problem:

  • Lack of Long-Term LPG Storage
  • India lacks large strategic LPG storage facilities.
  • Because of this:
    • The country cannot store LPG for long periods.
    • Any supply disruption in imports could cause shortages.

Way Forward

  • Increase domestic LPG production through better refining and exploration.
  • Build large LPG storage facilities to handle supply disruptions.
  • Diversify import sources to reduce dependence on few countries.
  • Improve transport and distribution systems for smooth supply.

Promote alternative cooking fuels like PNG, biogas and electric cooking

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