India’s government-owned refineries have increased domestic LPG production to about 44,000 tonnes a day as the country prepares for higher cooking-gas demand during the festive season and continues to face uncertainty over supplies from the Persian Gulf, according to a Bloomberg report carried by Aaj Tak Business.
The increase is aimed at reducing the risk of shortages during the period leading up to Diwali in November, when household LPG consumption is expected to rise. Winter demand could add further pressure to the cooking-gas supply system, the report said.
Domestic output from government-owned refineries is now around 20% higher than the average production recorded in August. The rise comes as disruptions and uncertainty continue along maritime routes that are important for oil and gas transportation, including the Strait of Hormuz and Bab el-Mandeb.
India relies heavily on imports to meet its LPG requirement and is the world’s second-largest LPG importer, according to the report. Historically, a significant share of its imported LPG has come through the Persian Gulf, leaving the country exposed to disruptions linked to conflict and instability in the region.
The government has also fixed LPG allocations for states and major industries as part of its response to the supply uncertainty. Domestic refineries had reduced the higher production levels maintained during the conflict period after alternative supplies from the United States and Africa became available during the summer. Production has now been raised again ahead of the expected festive demand.
The latest move follows steps taken during an LPG supply crisis in March. The minimum refill waiting period, which had been set at 45 days, has now been reduced to 25 days, according to the report. The change is intended to provide households with quicker access to refills as demand increases.
The supply response is being planned against a backdrop of continuing tensions involving the United States and Iran. Although the report said the sequence of attacks has stopped, tensions over the Strait of Hormuz have not fully eased. Any prolonged disruption along the route could affect the availability and movement of imported LPG, making domestic refinery output and allocation decisions more important for maintaining supplies.
The reported production increase is not a change in the retail price of LPG. The 14.2-kilogram domestic cylinder was priced at ₹942 in Delhi, ₹941.50 in Mumbai, ₹968 in Kolkata, ₹939.50 in Noida and ₹994 in Hyderabad, according to the figures cited by Aaj Tak Business. The 19-kilogram commercial cylinder was priced at ₹2,747.50 in Delhi and ₹2,701 in Mumbai.
The immediate next steps are the continued increase in domestic refinery output, implementation of the allocations for states and industries, and monitoring of imported LPG flows as India moves towards the November Diwali period.
