India’s 2026 LPG crisis represents a critical structural warning, exposing the strategic risks of the country’s 88.6% dependence on crude oil imports. As energy demand is set to triple by 2047, the nation's current reliance on volatile global markets and vulnerable supply chains is economically unsustainable.

Systemic Infrastructure Gaps

Although India has expanded its LNG regasification capacity to over 50 MMT annually, utilization lingers between 50-60% due to persistent pipeline constraints and demand mismatches. This misalignment proves that reactive government interventions cannot solve the underlying problem of overdependence on imported fuels.

Compressed Biogas (CBG): The Smart & Sustainable Alternative

India (with an annual potential of 62 MMT) must promote CBG as it offers:

• Energy security;
• Environmental sustainability; and
• Rural economic growth

Realizing this potential requires – as the ethanol blending programme demonstrated – transitioning from policy intent to execution discipline.

Strengthening the Bioenergy Ecosystem: What India Needs to Do

India needs to:

• Establish a national feedstock security framework;
• Streamline the regulatory and financial ecosystem; and
• Think beyond waste and actively promote dedicated energy crops (e.g. Napier grass)