# India Raises LPG Output as Hormuz Disrupts Gulf Supply Routes

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/23622
Published: 2026-09-24T08:13:34.000Z
Updated: 2026-09-24T08:13:34.000Z

India’s state-owned refiners have increased liquefied petroleum gas production as disruptions around the Strait of Hormuz threaten a supply route critical to the country’s cooking-fuel market.

India imports about 60% of its LPG consumption, and roughly 90% of those imports normally transit the Strait of Hormuz. The dependence has pushed refiners to redirect available hydrocarbon streams toward domestic LPG supplies.

The March LPG Control Order directed refineries to maximize LPG yields and route propane, butane, propylene and butenes to the three state oil marketing companies for domestic cooking gas. Petroleum and Natural Gas Minister Hardeep Singh Puri said the directives increased LPG production by 28% within five days.

“India was previously importing approximately 60 per cent of its LPG requirements from Gulf countries such as Qatar, UAE, Saudi Arabia, and Kuwait and 40 per cent is produced domestically,” Puri said.

In a separate June update, domestic production rose from about 32,000 metric tons per day to about 52,000 metric tons per day during the disruption. India also required aggregate indigenous LPG production to remain at no less than 40,000 metric tons per day while partially restoring propane, butane, propylene and butenes for petrochemical and other downstream uses.

As India moves into its festive period, seasonal demand for cooking fuel is expected to increase. Weaker industrial consumption has also reduced overall LPG demand compared with the same period a year earlier.

The United Arab Emirates remains important to India’s LPG supply network. ADNOC and Indian Oil Corp. have an LPG term contract dating from 2023 and have explored expanding supply and trading cooperation.

The measures leave India balancing higher domestic production against continued exposure to Gulf shipping routes.