Archive · 24 Sep 2026
India Raises LPG Output as Gulf Supply Risks Persist
India uses LPG, a gas commonly used for cooking.
People usually need more cooking gas during the festival season before Diwali.
Indian refineries are making more LPG to prepare for that increase.
They are also making more because some shipments from the Persian Gulf have been disrupted.
Three September shipments from Abu Dhabi National Oil Company could not be collected.
The company says it plans to send the LPG promised for October.
India is buying more LPG from places such as the United States to reduce its reliance on Gulf supplies.
Even with the seasonal increase, total demand may remain about 10% lower than last year because factories have not fully resumed using LPG.
Indian refiners have raised LPG production to prepare for festive-season cooking-fuel demand and uncertain Gulf supplies.
Domestic output is about 44,000 tonnes per day, nearly 20% above the August average.
Overall LPG demand is expected to remain about 10% below last year because industrial consumption has not fully recovered.
One September cargo for Bharat Petroleum Corporation Limited and two for Indian Oil Corporation Limited could not be collected from Abu Dhabi National Oil Company.
India is expanding alternative sourcing, with United States LPG accounting for more than 20% of imports, up from 6% last year.
- Who
- Indian state-owned refiners, Abu Dhabi National Oil Company, LPG consumers, and alternative suppliers including the United States.
- What
- India is increasing domestic LPG production and diversifying imports as festive demand rises and Gulf supply remains uncertain.
- When
- The increase is occurring during the festival season leading up to Diwali; production is currently about 44,000 tonnes per day.
- Where
- India, with traditional supplies coming largely from the Persian Gulf and some ADNOC volumes arriving through Sohar, Oman.
- Why
- To meet higher household demand and strengthen LPG availability while reducing exposure to disruptions affecting Gulf supply routes.
Supply Concerns
Supply Assurance
Reliability of Gulf cargoes
Supply Concerns
Three September cargoes due from Abu Dhabi National Oil Company could not be collected, indicating that conflict and disruption continue to threaten Gulf supplies.
Supply Assurance
Abu Dhabi National Oil Company says it remains committed to meeting Indian customers’ needs and plans to deliver the committed October volumes.
India’s sourcing strategy
Supply Concerns
India’s historical dependence on Persian Gulf supplies leaves it exposed to conflict and trade-related upheaval in the region.
Supply Assurance
India is increasing domestic production and expanding alternative sourcing, including potential longer-term United States supplies and cargoes from the United States and Africa.
Demand outlook
Supply Concerns
Festive and winter demand could require refiners to raise production further as households increase LPG consumption.
Supply Assurance
Overall demand is still expected to remain about 10% below last year because industrial LPG use has not fully recovered.
- Current domestic production
- Indian refiners are producing about 44,000 tonnes of LPG per day, nearly 20% above the August average.
- Expected demand
- Overall LPG demand is projected to remain about 10% below the same period last year because industrial demand has not fully recovered.
- Rural refill period
- The minimum waiting period for rural LPG refills was reduced to 25 days from 45 days.
- Uncollected September cargoes
- One cargo for Bharat Petroleum Corporation Limited and two for Indian Oil Corporation Limited could not be collected from Abu Dhabi National Oil Company.
- Planned October supplies
- Abu Dhabi National Oil Company indicated plans to supply five cargoes to Indian Oil Corporation Limited and three each to Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.
- United States import share
- The United States supplied 6% of India’s LPG imports last year, but its share has since risen above 20%.
- Domestic cylinder prices
- On September 23, a 14.2-kilogram cylinder cost ₹942 in Delhi, ₹941.50 in Mumbai, ₹968 in Kolkata, ₹939.50 in Noida, and ₹994 in Hyderabad.
