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The government directive asks refineries to optimize their processing to maximize the use of propane and butane streams and increase LPG production.

Post Published By: Sujata Biswal

Updated : 6 March 2026, 6:32 PM IST

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New Dlhi: The central government has directed oil refineries to increase LPG production by maximizing the use of propane and butane gas. According to a Reuters report, the government wants to ensure a strong gas supply and ensure the public does not face any shortages.

The government directive asks refineries to optimize their processing to maximize the use of propane and butane streams and increase LPG production. This will ensure adequate gas supply for government oil companies.

Ensuring LPG Supply to Companies
The government aims to ensure a steady supply of LPG to state-owned oil marketing companies. The major companies include Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL).

Gas cylinders are supplied across the country through these companies. Therefore, the government wants refineries to increase LPG production and provide adequate gas to these companies, ensuring uninterrupted supply to consumers.

Talks with Companies for Oil and LPG Supply
Meanwhile, the central government is also engaged in strengthening energy supply internationally. According to an ANI report, India is in talks with major oil producers and traders to purchase crude oil and LPG from the world's leading oil producers and traders.

The government's discussions are not limited to companies; it is also in contact with the International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC). India is also discussing insurance cover for ships with the United States.

Supply Agreements with the United Arab Emirates and the United States
Recently, India has signed new energy supply agreements with the United States and the United Arab Emirates. According to the report, the energy situation is being reviewed twice daily, given the current situation in the Middle East. The government is constantly monitoring the country's oil and gas reserves and the supply situation.

Officials say that India's current situation is secure, with adequate reserves. New stocks are being replenished.