The Centre has identified a multi-pronged approach to lessen the reliance of India on imported LPG and enhance long term energy security, where expansion of piped natural gas (PNG) systems and quickening the renewable energy uptake will be prioritized. In his Lok Sabha reply, the minister of state of the environment, Suresh Gopi pointed out that the government had been working towards diversification of energy sources as there was uncertainty in terms of global supply.
India is already importing approximately 60 percent of its LPG needs, and an almost 90 percent of its imports are traversed through the strategically vital Strait of Hormuz. This excessive dependence puts the country at the risk of geopolitical threats especially given the current tensions within West Asia.
The government has instructed domestic refineries to focus on LPG production with a diversion of key hydrocarbon streams in the short run with an estimated 40 percent rise in production. Moreover, the oil marketing companies of the public sector have been awarded contracts of importing 2.2 million metric tonnes of LPG in the United States in 2026, which will take approximately 10 percent of the import requirements of India. The move is a strategic change to cut on the reliance on the traditional suppliers within the gulf region.
The government is also supporting the use of PNG to commercial and urban consumers to minimize the LPG demand. It is also advocating a more comprehensive shift to cleaner sources of energy, such as solar, wind, bioenergy, and green hydrogen, and measures such as ethanol blending and energy efficiency.
These are some of the long-term actions to create a more sustainable and diversified energy ecosystem that can survive disruptions on a global scale.