India Ramps Up Domestic LPG Output Amid Festive Demand Surge

India's state-owned refiners have increased production of liquefied petroleum gas (LPG) to meet rising demand during the country's festive season. The boost comes as a result of measures taken to ease consumption, including reducing refill wait times for rural households from 45 days in March to 25 days last month.

The Hindu festival season, which runs until Diwali in November, is expected to drive up appetite for LPG, although industrial demand remains low due to the war. Despite this, consumers are buying, and winter weather typically provides a boost to demand, potentially forcing refiners to raise domestic production further.

India's reliance on imported LPG from the Persian Gulf has been disrupted by conflict in the region, but the country has secured alternative supplies from the US and Africa. The Abu Dhabi National Oil Co. (ADNOC) remains committed to meeting its customers' needs, including supplying five cargoes to Indian Oil Corp. in October.

State refiners may issue a tender this month seeking term supplies from the US, which could account for up to 20% of India's LPG imports next year. This would deepen India's shift away from relying on Middle Eastern suppliers, amid ongoing uncertainty over Persian Gulf supplies.