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India uses emergency powers to increase LPG production

2026-03-17View Original

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  According to Sinochem New Network, recently the Indian government has invoked emergency powers to order domestic refineries to maximize LPG production, in order to prevent disruptions in supply caused by the crisis in the Middle East from affecting civilian fuel supplies.   According to directives issued by the Indian government, all oil refineries are required to \"maximize the use of existing propane and butane resources for LPG production,\" and the use of these raw materials in the production of petrochemical products is prohibited. This move is aimed at ensuring that India’s state-owned fuel distributors, Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation, have sufficient resources to supply households.   India is the world’s second-largest importer of LPG, with consumption reaching 33.15 million tons last year; about two-thirds of this amount relies on imports, with the Middle East accounting for 85% to 90% of total imports. Currently, there are about 332 million active LPG users in the country.   The analysis indicates that forcing the conversion of propane and butane to LPG production will affect the output of alkylates. As components used in gasoline blending, alkylates have a higher market value than LPG, and the industry believes that this will reduce the profits of petrochemical companies.

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