India is turning up domestic LPG production ahead of the festive season as households prepare for higher cooking-fuel demand and uncertainty continues to cloud supplies from the Persian Gulf.
State-owned refiners have pushed LPG output to around 44,000 tonnes a day, nearly 20% above the August average, as demand is expected to strengthen through Diwali in November and potentially rise again during winter.
The timing matters. India is the world’s second-largest LPG importer and has traditionally depended heavily on Gulf supplies. Recent disruptions have highlighted the risks of relying too heavily on a single region.
Refiners had earlier scaled back domestic LPG production after alternative shipments from the US and Africa began arriving. But with some ADNOC-linked September cargoes for Indian refiners reportedly not collected, domestic output is rising again.
At the same time, India is widening its supply options. The US, which accounted for only about 6% of India’s LPG imports last year, has now become the country’s largest supplier, with its share rising above 20%.
Interestingly, despite the festive-season boost, overall LPG demand is expected to remain about 10% below last year’s level, largely because industrial consumption has not fully recovered.
For consumers, however, the bigger question is availability. With festivals approaching and global supply routes still uncertain, refiners are building a stronger domestic buffer to keep cooking gas flowing.