Energy security versus myopia: India’s LPG scarcity highlights the need for robust central planning
Over the past decade, India’s strategic initiatives for energy security have largely focused on raw-material sufficiency. The government created special storage facilities to hold reserves of crude oil, though not petroleum products. After the disruption caused by the Iran war’s outbreak, it asked refiners to maximize LPG output. This ramp-up, however, will not suffice to plug India’s shortfall. Nor do refiners have an incentive to set up special capacity just for emergency supplies.
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