LPG Production Ramped Up: Sitharaman on Household Supplies

New Delhi, Mar 17 (PTI) Finance Minister Nirmala Sitharaman on Tuesday said the domestic production of LPG is being ramped up to ensure cooking gas supply to households during turbulent times amid the West Asia crisis.

Replying to a debate on the second batch of supplementary demands for grants in the Rajya Sabha, the finance minister also said the country has enough fertiliser for Kharif crops and global bidding to procure nutrients for the next Rabi season will start soon.

India imports nearly 65 per cent of its domestic LPG requirements, and 90 per cent of the imports come through the war-hit Strait of Hormuz.

The West Asia crisis has come up with a new challenge, and Prime Minister Narendra Modi's stress on self-reliance and increasing production to meet India's basic demands has helped the country, she said.

"Overwhelmingly, 90 per cent of the 65 per cent LPG imports come through the Strait of Hormuz. As a result, there was speculation about whether we would get it or not. There are enough reports on how we are ensuring a steady flow during these turbulent times," she said.


In the LPG sector, Sitharaman said the country has been building up capacities and even "at this time the way we have ramped up domestic capacity in LPG, is also coming of help".

On March 8, the government directed oil refineries and petrochemical complexes to maximise LPG production by diverting propane, butane, propylene and butane streams to the LPG pool.

"As a result, domestically also, we are ramping up capacities to supply LPG, and domestic LPG production is going up about 25 per cent," the minister said, adding that the entire output of this ramped-up capacity is going to domestic consumers.

"So to ensure that households don't suffer, not only are there steady streams of shipping lines coming in, but domestically we have also ramped up the capacity for production of the LPG, diverting from other hydrocarbon material to LPG production. As a result, domestic supplies will be adequately streamlined, and supplies will remain steady," Sitharaman said.

On fertilisers, the minister said there is adequate availability for the Kharif season, and global bidding for imports will begin for the winter crop (Rabi).