State-owned refineries have raised domestic LPG production to about 44,000 tonnes a day, roughly 20% above the average recorded in August, as India prepares for higher cooking-gas demand during the festive season and continued uncertainty over supplies from the Persian Gulf.
The production increase is aimed at reducing the risk of shortages before the high-consumption period leading up to Diwali in November. Demand could receive a further seasonal boost during winter, according to the report cited by Aaj Tak Business.
The move comes as disruptions continue to affect important maritime routes, including the Strait of Hormuz and Bab-el-Mandeb, amid tensions in West Asia. India relies heavily on imports to meet its LPG requirements and has historically depended on supplies from the Persian Gulf. Any prolonged interruption on these routes can therefore affect the availability of cooking gas in the domestic market.
Aaj Tak Business reported, citing Bloomberg, that state-owned refiners began increasing LPG output because uncertainty over imported supplies has created a risk for cooking-gas security ahead of the festive season. The refineries had reduced production from wartime highs after alternative supplies from the United States and Africa became available during the summer. Production is now being increased again as those supplies are considered insufficient for the expected festive demand.
The Centre has also fixed LPG allocations for states and major industries as part of its response to the supply uncertainty. In addition, the minimum refill waiting period introduced during the LPG supply crisis in March has been reduced from 45 days to 25 days.
India is the world’s second-largest LPG importer, making domestic production and import logistics central to household fuel availability. The current situation highlights the connection between international shipping routes and everyday urban consumption: a disruption far from Indian cities can affect the ability of households, restaurants and other users to obtain cooking gas.
The report listed the price of a 14.2-kilogram domestic LPG cylinder at Rs 942 in Delhi, Rs 941.50 in Mumbai, Rs 968 in Kolkata, Rs 939.50 in Noida and Rs 994 in Hyderabad. For 19-kilogram commercial cylinders, it reported prices of Rs 2,747.50 in Delhi and Rs 2,701 in Mumbai.
The immediate government response is focused on increasing domestic refinery output, allocating available LPG and managing refill intervals while maritime supply remains uncertain. The next significant pressure point will be the rise in festive consumption through Diwali and the subsequent winter demand period.
