India Eyes 30-Day LPG Stockpile as BPCL Drives Major Storage Push

India is evaluating a 30-day strategic Liquefied Petroleum Gas (LPG) stockpile to strengthen energy security after the Iran war exposed supply risks linked to the Strait of Hormuz, as per news reports. 

As part of the proposed plan, Bharat Petroleum Corporation Limited (BPCL) is preparing a ₹5,000 crore investment to expand LPG storage capacity from around 200 thousand metric tonnes (TMT) to 340 TMT. 

Expansion plans of Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL) are still under consideration. 

India’s LPG Storage and Import Strategy 

The government is yet to decide whether the proposed inventory should be based on total LPG consumption, total imports, or residual supply risk after import diversification. 

The strategy includes expanded onshore storage, underground caverns and floating storage in Indian waters, along with long-term supply contracts with the United States and additional imports from Europe and Russia.  

Supply Position and Infrastructure 

India imports nearly 60% of its LPG requirements, with around 90% of imports routed through the Strait of Hormuz. As of April, state-run OMCs operated 214 LPG bottling plants with a combined rated bottling capacity of 23.04 million metric tonnes per annum (MMTPA). 

According to the Petroleum Planning and Analysis Cell (PPAC), LPG tankage at bottling plants provides 4 to 7 days of cover, averaging 5 days nationwide, while combined storage across all sources ranges from 8 to 30 days, with an all-India average of 18 days. 

Government Measures 

After the war began on 28 February 2026, the government directed refineries to maximise LPG production, imposed booking restrictions and introduced supply curbs for commercial and industrial users. 

LPG is marketed by state-run OMCs and private refiners under the Parallel Marketing System (PMS), which allows private companies to import and sell LPG at market-determined prices without government subsidy. 

Read More: Commercial LPG Cylinder Prices Reduced by ₹183.50 to ₹2,930 Effective July 1, 2026; Domestic Rates Unchanged! 

Conclusion 

The proposed storage expansion and import diversification plans are aimed at strengthening India's LPG supply chain while improving preparedness against future supply disruptions. 

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