India’s State Refiners Raise LPG Output as Gulf Supply Risks Persist
September production was estimated at about 44,000 tons per day, nearly 20% above August, as India seeks alternative cargoes and prepares for seasonal demand.
India’s state-owned refiners lifted liquefied petroleum gas production in September as Gulf supply risks persisted and the country prepared for seasonal cooking-fuel demand.
Output averaged an estimated 44,000 tons per day during September 2026, nearly 20% above the August average. Demand was expected to remain about 10% below the comparable period last year because industrial LPG consumption had not fully recovered.
India previously sourced about 60% of its LPG requirements from Gulf countries. About 90% of its LPG imports transited the Strait of Hormuz, leaving the country exposed to disruptions along a key shipping route.
Uncollected September cargoes included one intended for Bharat Petroleum Corp. and two for Indian Oil Corp. All three were supplied by Abu Dhabi National Oil Co. (ADNOC). ADNOC indicated that its committed October volumes would include five cargoes for Indian Oil, three for Bharat Petroleum and three for Hindustan Petroleum Corp.
India is seeking LPG cargoes from the United States, Norway, Canada, Algeria and Russia as it diversifies purchases. U.S. supplies accounted for more than 20% of India’s LPG imports, compared with 6% a year earlier.
A March LPG directive ordered refineries to maximize yields and send propane, butane, propylene and butenes to India’s three oil-marketing companies for household cooking gas. The government said production rose 28% in the five days after the directive.
The measures build on earlier efforts to increase India’s domestic LPG production, while refiners continue balancing higher local output with dependence on imported cargoes.
