The Ministry of Petroleum and Natural Gas has issued a mandatory order to all oil refining companies across India to prioritize the production of Liquefied Petroleum Gas (LPG). Effective from March 5, 2026, this directive ensures that the supply of cooking gas to households takes precedence over industrial use. The government has taken this step to secure energy needs for domestic consumers and prevent any shortage in the market.
Strict Rules for Refineries and OMCs
Under the new order, refineries must utilize all available propane and butane to maximize LPG output. The government has explicitly banned the diversion of these gases for manufacturing petrochemicals or other industrial products. The entire production volume must now be sold strictly to state-run Oil Marketing Companies (OMCs) like IOCL, BPCL, and HPCL. These companies are further directed to market this supply solely to domestic households, ensuring that the common man faces no shortage in their kitchens.
Global Crisis and Price Stability
This decision follows significant disruptions in the global market, including the closure of the Strait of Hormuz and issues at Qatar’s LNG terminal. While international prices for propane have surged, government sources have confirmed that there are no immediate plans to hike the prices of domestic LPG, petrol, or diesel. Officials stated that the priority is to safeguard household energy security for the 33-crore customer base, supported by existing strategic reserves that can cover demand for about 15 to 20 days.
