By Saanchi Gupta | Updated: March 25, 2026 4:23 PM IST
India is currently undergoing an LPG crisis due to the supply disruption caused by the West Asia conflict. The war has affected Strait of Hormuz, on which India remains greatly dependent. This has led to delays, shortages, and a lot of panic buying in some cities. However, the government has come up with a smart move to combat the problem.
The government is planning to build a 4 million metric tonne strategic Petroleum Reserve at Chandikhol in Odisha. Union Minister Dharmendra Pradhan on Wednesday said, "The Cabinet had decided to build a 4 million metric tonne Strategic Petroleum Reserve in Chandikhol, Odisha. Implementation of that project was delayed due to several reasons. Last year in 2025, an agreement was reached under the leadership of Union Minister Hardeep Puri and Chief Minister Mohan Charan Majhi, and I have written a letter to the Chief Minister and Union Minister Hardeep Puri to implement it soon," as reported by ANI.
As India is currently facing supply disruptions, the new oil reserve is likely to increase the country's emergency oil buffer and reduce the dependency on import-based issues.
India imports almost 60 per cent of LPG and 90 per cent comes through West Asia route of the Strait of Hormuz. The disruptions in the region during conflict have affected India's supply chains. However, the Indian government had earlier directed for increasing the domestic LPG production by almost 25 per cent.
According to the reports, several cities are facing supply issues and restaurants are charging extra amounts on the bills. The rise in black marketing and panic buying has also become common issues.
India has increased the domestic LPG production by almost 25 per cent. Alongside, many vessels like Shivalik, Nanda Devi, Jag Vasant, and Pine Gas had already reached India, carrying huge loads in metric tonnes.
The Union Minister said, "if we start work on building the Strategic Petroleum Reserve soon, it will be a big step in the country's oil reserves for the security of the country," highlighting the importance of a new petroleum reserve for the country.