LPG supply secure in India amid West Asia tension, big relief to auto sector from government

Due to the ongoing tension in West Asia, pressure on the supply of crude oil and gas is being seen across the world. However, the government in India has clarified that there is no major crisis on LPG and energy supply at the domestic level. The Ministry of Heavy Industries has assured that the auto parts manufacturing sector will not be allowed to face any shortage of LPG.

Guarantee of LPG supply to auto industry

Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries, said that the government is continuously monitoring the situation in collaboration with ACMA and the Petroleum Ministry. He said that the supply chain is completely safe and no serious shortage has been reported so far.

Dependence and concern over the Strait of Hormuz

India imports about 90% of its LPG requirement through the Strait of Hormuz. Tension in West Asia has affected traffic on this vital sea route, raising initial concerns about supplies.

Government preparation and production increase

Sujata Sharma, Joint Secretary, Petroleum Ministry, said that the government has made strong arrangements to deal with the situation. Domestic production has been increased to about 45 thousand metric tons, so that the supply chain is not disrupted.

Apart from this, the government has also diversified the supply sources by increasing partnerships for crude oil with other countries.

Adequate stock and industrial support

According to government data, there is currently sufficient stock of LPG and LNG in the country. Keeping in view the industrial needs, allocation of 800 tonnes of C3 and C4 molecules per day has also been released, so that the production is not affected.

Increase in production in auto sector

Despite the challenges, the automobile sector has performed strongly in March. There has been an increase of about 15 to 16% in the production of vehicles, which is a positive sign for the industry.

Ship stranded on sea route and hope for relief

According to the Shipping Ministry, 15 Indian ships are still stranded in the western part of the Strait of Hormuz. Efforts are on to rescue them safely.
Meanwhile, a relief news is that LPG tanker “Jag Vikram” is going to reach Kandla Port in Gujarat with 20,400 metric tons of gas, which will strengthen the domestic supply.

Changes in EV sector and PM E-DRIVE scheme

The government has made several important amendments in the PM E-DRIVE scheme to promote electric vehicles.

• E-rickshaw subsidy now extended till March 2028
• Electric two-wheeler subsidy extended till 31 July 2026
• Deadline for local parts (PMP norms) extended till September 2026

Emphasis on ethanol and self-reliance

India has achieved the target of 20% ethanol blending (E20) in petrol and now work is being expedited on flex-fuel technology, so that the performance of vehicles is not affected.

Big plan on rare earth magnet production

The government has prepared to promote rare earth permanent magnet production in the country under a scheme of ₹7,280 crore. More than 25 companies have shown interest for this, which is considered a big step towards making India’s electric mobility self-reliant.