India diversifies LPG sourcing: Supply remains steady despite West Asia tensions

India has begun sourcing liquefied petroleum gas (LPG) from multiple global channels, including the United States, as it moves to diversify supplies amid ongoing geopolitical tensions in West Asia. The government on Tuesday said there is no disruption in domestic availability, with supplies remaining stable across the country.

Officials said oil marketing companies (OMCs) have expanded procurement beyond traditional Gulf suppliers, even as the bulk of LPG continues to be sourced from the region. “Our OMCs have started taking LPG from the US. Government is putting all efforts to diversify sources of LPG too,” Sujata Sharma, Joint Secretary in the Petroleum and Natural Gas Ministry, said during an inter-ministerial briefing.

The diversification push comes as global energy supply chains face pressure due to the ongoing conflict involving Iran, the United States and Israel, which has disrupted maritime traffic in key routes such as the Strait of Hormuz. Despite these challenges, the government maintained that refineries are operating at full capacity and stocks of petrol, diesel and LPG remain adequate.

“There is no dry out at any LPG distributor, and supplies to consumers remain smooth,” Sharma said, adding that increased diversification has also led to higher crude availability.

Authorities said a surge in advance bookings driven by consumer anxiety is beginning to ease. Panic-driven LPG refill bookings, which peaked at 8.9 million on March 13, have declined to around 7 million.

Indian Oil Corporation also reassured consumers that supplies remain secure and uninterrupted. “Your LPG supply remains secure and uninterrupted. IndianOil continues to ensure steady LPG availability for households across the country,” the company said, urging households to avoid booking refills earlier than necessary.

Officials said such advance bookings can temporarily inflate demand and affect delivery timelines. The government has also asked consumers to avoid hoarding and refrain from purchasing cylinders from the black market, while states have stepped up enforcement to curb illegal practices.

To ease pressure on domestic LPG demand, alternative fuels such as kerosene and coal have also been activated in some regions.

India’s supply chain has also been bolstered by fresh maritime deliveries. The Indian-flagged LPG carrier Nanda Devi arrived at Vadinar in Gujarat early Tuesday with a consignment of 46,500 metric tonnes of LPG, where it is set to undertake a ship-to-ship transfer operation.

“It has arrived this morning. So Nanda Devi vessel has just arrived early morning today at 2.30am and it has come with a parcel size of 46,500 metric tons of LPG. Now it has come here for ship to ship transfer,” said Sushil Kumar Singh, Chairman of the Deendayal Port Authority, Kandla.

A second vessel, BW Birch, is assisting in the transfer process, which is being carried out in the anchorage area about five nautical miles from the port. Authorities said all LPG vessels are being prioritised under government directives to ensure swift discharge and distribution.

Earlier this week, another LPG carrier, Shivalik, docked at Mundra Port, underscoring continued inflows despite hazardous shipping conditions in the region.

The government said domestic LPG production has increased by 36 per cent, while digital booking systems now account for around 90 per cent of refill requests, improving distribution efficiency.

Union Minister of State for Petroleum and Natural Gas Suresh Gopi said efforts are ongoing to shield consumers from global supply disruptions. “We are trying to overcome that criticality in the situation due to a West Asian issue,” he said.

Officials said the situation remains under close monitoring, with coordinated logistical and diplomatic efforts underway to ensure uninterrupted fuel supplies across India.

— Inputs from IANS and ANI