Indian Refiners Lift LPG Output Nearly 20% as Hormuz Blockage Chokes Imports

Indian state refiners have stepped up the production of liquefied petroleum gas (LPG) by nearly 20% as demand rises during the festive season and imports from the Middle East remain constrained by Hormuz Strait disruptions. September has seen a notable rise in domestic LPG output, a move aimed at offsetting shortfalls in external supply and ensuring household and commercial cylinders remain available during peak consumption. The tighter import flow has intensified pressure on refineries to run at higher capacity and to allocate LPG more efficiently to public distribution systems and customers. Industry observers say the shift toward greater local production underscores the impact of geopolitical tensions on India’s energy supply chain and the need to rely more on domestic capacity when overseas supplies falter. The trend could help cushion households against volatility in LPG availability during Diwali and other festivals, though it tests refinery throughput and the distribution networks responsible for delivering cylinders to millions of homes. While imports have faced headwinds, state refiners appear to be leveraging increased domestic production to maintain supply and support price stability for households and small businesses dependent on LPG. Analysts caution that sustained progress will depend on sustained refinery performance, logistics, and policy measures to ensure reliable, affordable LPG in the months ahead.