IOC lifts LPG output 30% as refineries run above capacity during Hormuz disruption
Indian Oil Corporation said it raised LPG production by nearly 30% and ran refineries above 100% utilisation amid Strait of Hormuz-linked disruption. The company also outlined capacity expansion, with refining capability targeted to rise from 80.75 mtpa to about 98 mtpa.
What happened
Indian Oil Corporation (IOC) · IOC raised LPG output nearly 30% and ran refineries above capacity during Strait of Hormuz-linked supply disruption. The fuel
Key facts
- LPG production increased nearly 30%
- Refineries operated above 100% utilisation
- India imports over 88% of crude requirement
- 45% of crude imports and nearly 90% of LPG imports are linked to the Strait of Hormuz
- FY ended March 2026 standalone net profit: ₹36,802 crore
- FY2026 turnover: ₹8.86 lakh crore
- Aggregate sales: over 105 million tonnes
- FY2026 crude processed: 75.45 million tonnes
- FY2026 domestic petroleum-product sales: 88.97 million tonnes
- Q1 crude processed: 19.17 million tonnes at 109.4% utilisation
- Q1 pipeline throughput: 28.55 million tonnes
- Domestic petroleum-product market share: 43.1%
- Refining capacity targeted to rise from 80.75 mtpa to about 98 mtpa
- Petrochemical intensity target: about 15% by 2030
- Natural-gas sales target: 1.5x by 2030
- Upstream integration target: over 10% by 2031
- Terra Clean developing 1 GW, with 4.3 GW under preparation
Why this matters
IOC’s demonstrated operating flexibility and planned capacity build-out strengthen its strategic position for infrastructure partnerships and downstream growth opportunities.
What to watch
- Duration and severity of Strait of Hormuz shipping disruption, including vessel insurance premiums and transit availability.
- IOC refinery utilisation, unplanned maintenance events and evidence of product-quality or reliability stress from sustained above-nameplate operations.
- LPG cylinder availability, bottling-plant throughput and dealer-level stock-out reports.
- Government decisions on LPG subsidies, retail fuel price pass-through and emergency inventory release.
- Crude and LPG import differentials versus domestic refinery economics.
- Progress, capital allocation and regulatory approvals for IOC's expansion from 80.75 mtpa toward approximately 98 mtpa.
- Prioritise LPG output, diesel and petrol allocations toward high-demand and supply-constrained regions while protecting retail station availability.
- Build precautionary inventories of crude, LPG and critical refinery inputs; increase use of domestic pipeline, rail and coastal distribution routes.
- Diversify crude and LPG procurement away from Hormuz-dependent cargoes and lock in alternative term supply where economics permit.
- Use the disruption to support approvals for refinery expansion, LPG bottling capacity, storage and strategic logistics investments.
- Monitor retail fuel margins closely and seek calibrated price or subsidy support if elevated freight and product costs persist.