Govt invokes ESMA, orders refiners to boost LPG production amid Middle East conflict fears

• Government invoked ESMA powers under the Essential Commodities Act of 1955, directing oil refiners to ramp up LPG production.
• Move aims to hedge against potential disruptions from the widening Middle East conflict, which impacts the critical Strait of Hormuz for LPG imports.
• Refiners must maximize propane and butane for LPG, sell only to IOC, BPCL, HPCL, and are barred from using them for petrochemicals.
• India consumes 31.3 million tonnes of LPG annually, with 85-90% of imports vulnerable due to the Strait of Hormuz situation.
• Natural gas supplies also impacted by the conflict and Qatar's LNG facility shutdown; India is diversifying sources, including US LPG imports.