Reliance Industries has made some key moves to help India cope with the cooking gas shortage caused by the prevailing war in Iran. Reliance Industries, which operates the world’s largest refinery, has opted to reduce alkylate production, chemicals used to blend gasoline. Rather, it has chosen to increase Liquefied Petroleum Gas (LPG) production. Since the outbreak of the war, Reliance’s LPG production has tripled.
This move is highly important for India, as the country is experiencing one of its worst gas crises in decades. This is because India typically relies on the Middle East for 90% of its liquefied petroleum gas (LPG) imports. The Strait of Hormuz shutdown, however, has put a stop to that. In response, the federal government ordered refiners back in March to maximise LPG production at any cost by running their alkylations at the lowest possible prices. Reliance is sacrificing its US exports to ensure Indian households have sufficient LPG for cooking.
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The situation is so dire at present that the authorities have resorted to limiting gas supplies to factories to prioritise domestic needs. Reliance’s decision to use its feedstock, the basic ingredient for refineries, fits into the broader picture of ensuring that kitchens across the country continue to function. Although this results in limited exports from the company, it is very crucial for India in its quest for alternative energy sources at this point in time.
