India Boosts LPG Production To Offset Import Disruptions From West Asia Conflict

New Delhi, May 5 (KNN) Indian refiners increased LPG production by over 30 percent in March to offset import disruptions caused by the ongoing conflict in West Asia, with higher output expected to continue in the coming months.

According to data from the Petroleum Planning and Analysis Cell (PPAC), India’s LPG production rose 30.8 percent year-on-year and 32 percent month-on-month to 1.4 million metric tonnes in March as cargo disruptions through the Strait of Hormuz affected supplies.

It was noticed that domestic refiners accelerated output to prevent shortages of cooking gas amid concerns over supply disruptions, reported S&P Global.

During the January-March period, LPG production increased 11 percent year-on-year to 3.62 million metric tonnes, while total output for FY 2025-26 stood at 13 million metric tonnes, up 2.5 percent from the previous year.

India Prioritises Household Supply Amid Rising Demand 

India’s overall LPG demand in FY 2025-26 rose 6 percent year-on-year to 33.2 million metric tonnes.

Sujata Sharma, joint secretary, Ministry of Petroleum said that ensuring uninterrupted LPG supply to households has remained a priority since the outbreak of the West Asia conflict, with no major shortages reported at distribution centres.

Analysts said domestic production may increase further in April and May as refiners have been instructed not to divert propane and butane for petrochemical use.

India currently depends on the Gulf region for nearly 60 percent of its LPG consumption, prompting efforts to secure alternative supplies and prioritise domestic availability.

The Petroleum Ministry said refineries are operating at high capacity with adequate crude inventories while maintaining sufficient petrol and diesel stocks, alongside increased LPG production to support domestic demand.

(KNN Bureau)