New Delhi, Delhi
Amid rising LPG demand during the festive season and concerns over supplies due to ongoing tensions in West Asia, there is some relief for consumers. India’s state-run oil refineries have increased domestic production of liquefied petroleum gas (LPG). According to available information, LPG production in the country has now reached around 44,000 tonnes per day.
The ongoing conflict in West Asia has raised concerns over possible disruptions to LPG supplies from the Persian Gulf. India relies heavily on imports to meet a significant portion of its LPG requirements, with supplies from the Gulf region playing an important role for years. In this situation, increasing domestic production is considered an important step toward maintaining the availability of cooking fuel across the country.
LPG Production Reaches 44,000 Tonnes a Day
According to people familiar with the matter, Indian refineries have recently increased LPG production again, taking the level to around 44,000 tonnes per day. This is reportedly around one-fifth higher than the average production recorded in August.
Earlier, Indian refineries had reduced production from wartime highs after supplies from alternative sources increased. Additional supplies began arriving from the United States and Africa, while Abu Dhabi National Oil Company also started supplying LPG through Oman’s Sohar Port.
However, amid continuing tensions in West Asia and rising domestic demand during the festive season, refineries have once again increased production.
LPG Demand Could Rise During Festive Season
India’s festive season has already begun and is expected to continue through Diwali in November. During this period, LPG consumption could increase due to higher household cooking requirements and other domestic activities. Demand for household fuel could rise further during the winter season.
This has created a challenge for state-run oil companies to maintain a balance between domestic production and supply. If demand continues to increase, refineries may need to raise production further.
Rules Also Changed for Rural Consumers
Amid signs of improved LPG availability, the waiting period for cylinder refills has also been changed for rural consumers. Last month, rural households were informed that they could book a cylinder refill after a gap of 25 days.
This is shorter than the emergency 45-day refill interval introduced in March. Officials attributed the change to improved supplies and a reduction in the backlog.
Efforts to Reduce Dependence on Imports
India is the world’s second-largest LPG importer, making international markets an important part of the country’s overall supply system. Any prolonged disruption in the Persian Gulf could create challenges for India.
Against this backdrop, increased production by domestic refineries is an important part of the strategy to maintain stable LPG supplies. With festive-season and winter demand expected to rise, production and supply levels are likely to remain closely monitored in the coming weeks.
