Indian Refiners Hike LPG Output 20% Amid Hormuz Supply Disruptions

Key Facts

1Indian state refiners increased LPG production by 20% in September to an average of 44,000 tons daily.

2The production hike follows strangled imports through the Strait of Hormuz and a seasonal demand spike during India's festive season.

Amid escalating geopolitical tensions threatening global energy security, India has taken proactive steps to secure its domestic needs. Indian state-owned refineries increased their production of liquefied petroleum gas (LPG) by 20% in September, reaching an average of 44,000 tons daily. This strategic move aims to counter import disruptions through the Strait of Hormuz, a vital artery for Indian energy supplies, while coinciding with a seasonal demand spike during the country's festive season.

Approximately 60% of Indian households rely on LPG as their primary cooking fuel, making supply stability a top economic and social priority. According to analyst reports, the strangling of traditional routes through the Strait of Hormuz has forced New Delhi to diversify sources, relying more on domestic output and imports from the US and Africa. The UAE remains a pivotal partner as India's largest supplier, with ADNOC confirming its commitment to deliver all contracted volumes for October despite ongoing logistical challenges.

Looking ahead, concerns regarding industrial demand destruction persist despite efforts to secure consumer needs. With real-time instrument price data currently unavailable (as of close September 24, 2026), traders are closely monitoring any further developments in the Strait of Hormuz that could pressure shipping costs. Global markets are also awaiting key economic data in the coming days, including inflation and industrial production figures, to gauge the broader impact of energy constraints on macroeconomic growth.