West Asia conflict exposes India's critical LPG dependence; government takes measures to ensure supply
The ongoing conflict in West Asia has severely impacted India's Liquefied Petroleum Gas (LPG) supply, highlighting the nation's heavy import dependence. India imports about 60% of its LPG, with 90% routed through the Strait of Hormuz, primarily from Qatar, UAE, and Kuwait. This dependence, coupled with limited strategic storage capacity (less than two days of consumption), makes India vulnerable to supply disruptions and price hikes. The government has responded by directing domestic refiners to maximize LPG production for household consumers and cutting LPG subsidy allocation. LPG consumption has surged due to schemes like PMUY, increasing active consumers to 33 crore.
Key Points
- India is heavily dependent on LPG imports, with approximately 60% of its requirement sourced from West Asia via the Strait of Hormuz.
- The nation's strategic LPG storage capacity is critically low, holding less than two days of consumption.
- The government has mandated domestic oil refiners to maximize LPG production and prioritize household consumers to mitigate supply disruptions.
- LPG consumption in India has significantly increased, driven by schemes like the Pradhan Mantri Ujjwala Yojana (PMUY), which added 10 crore connections since 2017.
- The International Energy Agency has flagged India's lack of large underground storage as an infrastructural weakness.
Exam Facts
- India imports ~60% of its LPG, with ~90% routed through the Strait of Hormuz.
- Top LPG suppliers to India: Qatar (~34%), UAE (~26%), Kuwait (~8.3%).
- Domestic LPG production increased 25% since March 8 orders.
- Total active domestic LPG consumers: 33 crore.
- Pradhan Mantri Ujjwala Yojana (PMUY) added 10 crore connections since 2017.
- India's total underground LPG storage capacity: 1.4 lakh tonne (less than two days of consumption).
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