Indian Refiners Lift LPG Output Nearly 20% as Hormuz Blockage Chokes Imports
Indian state refiners have increased domestic production of liquefied petroleum gas (LPG) as the country enters its festive season and imports from the Middle East remain constrained by a Strait of Hormuz disruption. Bloomberg-cited data show September local output averaging 44,000 tons per day, roughly 20% higher than August levels, while India has sought alternative suppliers including the U.S., Africa and the UAE.
Why It Matters
Ramping up refinery output and diversifying import sources helps India buffer supply interruptions that would otherwise hit households and industry, particularly given the economy’s heavy reliance on LPG for cooking. How effectively these measures offset the Hormuz chokepoint will influence domestic availability and trade flows in the near term.
Key Facts
- September local LPG production (average): 44,000 tons per day (Bloomberg data, reported by Indian media)
- Increase from August: About 20% higher than August average
- Alternative import sources: United States, Africa, and increased imports from the United Arab Emirates
- UAE supplier status: UAE remains India’s largest LPG supplier; ADNOC confirmed delivery of all contracted LPG volumes for Indian buyers in October
- Household reliance: Approximately 60% of Indian households use LPG as primary cooking fuel
Indian state refiners have boosted domestic production of liquefied petroleum gas as the country moves into its festive season and supply routes from the Middle East face disruption. Bloomberg-cited figures reported by Indian media show local LPG output averaged about 44,000 tons per day in September, a rise of nearly 20% compared with the August average.
The increase in refinery output comes alongside a broader push to diversify import sources. India has expanded LPG purchases from suppliers in the United States and Africa, and has increased volumes from the United Arab Emirates in recent months. The UAE has maintained exports by using a pipeline bypass to Fujairah for crude and by transshipping fuels via the Gulf of Oman onto larger tankers, helping keep product flows moving despite the Strait of Hormuz disruption.
The Emirati national oil company ADNOC told Bloomberg it remains committed to fulfilling contractual LPG deliveries for Indian buyers in October, saying it continues to supply reliable volumes to support India’s needs. India relies heavily on LPG for household cooking, with around 60% of homes using it as their primary fuel, and the Strait of Hormuz previously handled about 90% of the country’s LPG imports, making the chokepoint’s disruption immediately consequential for supply dynamics.
Analysts cited by The Telegraph noted that while refiners and import diversification have eased some pressure, overall LPG demand this season may still be lower than last year because of reduced industrial consumption. For now, the combined response of higher domestic output and diversified import routes is helping India manage a supply squeeze caused by the Hormuz blockage, even as trade patterns adjust.
Keep Reading
Morgan Stanley: Diesel Export Ban Would Push U.S. Gas Prices Higher
10-year Treasury yield spikes to highest point since 2007
