India's State Refiners Boost LPG Production Amid Gulf Supply Risks

India's state-owned refiners have increased liquefied petroleum gas (LPG) production to meet seasonal demand, despite ongoing supply risks from Gulf countries. According to recent data, LPG output averaged an estimated 44,000 tons per day in September, a nearly 20% increase from the August average.

The rise in production is attributed to measures implemented by the government to maximize yields and send propane, butane, propylene, and butenes to India's three oil-marketing companies for household cooking gas. This directive was issued in March and has led to a 28% increase in LPG production over the past five days.

India had previously sourced around 60% of its LPG requirements from Gulf countries, with about 90% of imports transiting through the Strait of Hormuz. However, with ongoing supply risks, the country is diversifying its purchases by seeking LPG cargoes from the United States, Norway, Canada, Algeria, and Russia.