India’s state refiners lift LPG output 20% ahead of Diwali as Gulf disruption tightens supply

Indian Oil, BPCL and HPCL have raised cooking-gas production to about 44,000 tonnes a day, nearly 20% above August levels, as festive demand rises and Gulf cargo disruptions persist. Refiners are diversifying LPG imports toward the US and Africa to protect household and food-service availability.

— Source publishedWed, 23 Sept, 2026, 17:52 IST·First seen Wed, 23 Sept, 2026, 18:22 IST·Source NDTV Profit

What happened

Indian Oil · Indian state refiners have raised LPG output to about 44,000 tons daily as festive-season household demand increases and Persian Gulf disruptions

Key facts

  • 44,000 tons of LPG per day
  • nearly 20% above August average
  • 25-day rural cylinder refill wait
  • 45-day emergency refill wait
  • demand projected 10% below the same period last year

Why this matters

Accelerate US and African LPG sourcing, secure Diwali inventory buffers, and prioritize cylinder availability for household and food-service demand as Gulf disruptions persist.

What to watch

  • Gulf shipping disruptions, vessel rerouting, war-risk insurance premiums, and LPG cargo loading delays.
  • Saudi CP and other Asian LPG benchmark movements relative to Indian domestic cylinder prices.
  • Monthly domestic LPG price revisions, subsidy announcements, and oil-marketing-company marketing-margin commentary.
  • Commercial LPG allocation notices, distributor stock-out reports, and delivery lead-time changes in major cities.
  • US Gulf Coast and African LPG export availability, freight rates to India, and port congestion.