India restricts propane/butane use to LPG for households amid Strait of Hormuz closure fears.

India has ordered oil refiners to prioritize propane and butane for LPG production and supply it exclusively to three state-owned oil marketing companies for domestic use, amid concerns over supply disruptions following a five-day closure of the Strait of Hormuz. The move, effective March 5, 2026, prohibits using these streams for petrochemicals and mandates that LPG be sold only to households, with penalties under the Essential Commodities Act for violations. The directive aims to secure cooking fuel supplies for nearly 33 crore consumers, as India imports 90% of its LPG from the Middle East, mostly via the strait. While current stocks are sufficient and being replenished, the government is diversifying supply sources and engaging global partners to strengthen energy security.