India has directed state companies and private refiners to maximize LPG production to counter supply risks from Hormuz instability. The government’s Aug. 13 notification urges refiners to adopt all feasible measures, including converting naphtha into LPG, as the Strait of Hormuz—critical for ~90% of India’s LPG imports—remains volatile due to prolonged Iran-related tensions. This move aims to stabilize domestic cooking gas supplies. Refineries are also exploring alternative feedstocks to mitigate disruptions. The strategy reflects heightened concerns over global crude oil routes.

The directive emphasizes technical and economic optimization, prioritizing output beyond minimum levels. State-owned entities and private players must coordinate to ensure scalability. While India focuses on domestic production, the Hormuz crisis underscores reliance on alternative logistics. Analysts note this could ease pressure on import-dependent sectors like households and industries.

The order aligns with broader energy security efforts. By leveraging local resources and adaptive refining techniques, India seeks to reduce vulnerability to geopolitical shocks. However, success hinges on consistent feedstock availability and operational flexibility. The August 13 notification marks a proactive response to emerging risks.