Indian LPG Refiners Cut Losses Amid Global Supply Disruptions

Indian state-controlled refiners have seen their losses on LPG sales narrow significantly this month. According to an Indian energy ministry official, Indian Oil Corporation Ltd., Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) have reduced their losses by nearly threefold compared to July.

The revenue loss has decreased from $5.25 per household cylinder of LPG in July to $1.97 this month, with the government compensating fuel retailers for these losses at below-market rates.

India's reliance on LPG imports is a major concern due to its supply chain disruptions caused by the war in Iran and the closure of the Strait of Hormuz.

The country has been scrambling for LPG supply, with imports coming from routes that don't need the Strait of Hormuz but are more expensive and take longer to reach India. The government has urged local refiners to increase production amid the supply crunch.