India Cranks Up LPG Output Amid Festival Season Demand Surge

India's state-owned refiners have ramped up liquefied petroleum gas (LPG) output to meet rising demand during the country's festive season. The increase is part of a broader effort to manage consumption and reduce reliance on imported LPG, which has been disrupted by conflict in the Persian Gulf.

India, the world's second-largest importer of LPG, typically sources most of its supply from the Middle East. However, with contracted volumes from Abu Dhabi National Oil Co. (ADNOC) affected by fighting, Indian refiners have turned to domestic production and alternative suppliers. Domestic output has climbed to around 44,000 tons per day, a nearly 20% increase over August levels.

Measures taken to ease consumption, such as limiting refill cylinder wait times, are also beginning to ease, further boosting demand. The Hindu festival season is expected to drive appetite for LPG, with industrial demand still recovering from the impact of the conflict.