Benchmarks
Nifty23,477.8046.3

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
21.98 %

Invest Now

Enter search text:

Business News›Industry›Energy›Oil & Gas›India ramps up domestic LPG production as renewed US-Iran attacks spark fresh fears over Strait of Hormuz supplies

Read Today's Paper

India ramps up domestic LPG production as renewed US-Iran attacks spark fresh fears over Strait of Hormuz supplies
Synopsis

India is increasing domestic cooking gas production to address supply gaps. Local refiners aim to add over ten percent to current output levels. Imports through the Strait of Hormuz are now less reliable due to renewed attacks. Domestic consumption has also significantly decreased since the war began. This shift helps meet demand while mitigating import risks.

IANS

New Delhi: India is ramping up domestic cooking gas production to bridge the current supply gap and cushion against possible further import disruptions from renewed US-Iran attacks.



Local refiners aim to add about 4,000 metric tonnes per day of liquefied petroleum gas (LPG), or more than 10%, to the current output of 37,000-38,000 metric tonnes per day, according to people familiar with the matter. "For now, the stocks are comfortable.



Also read: Iran attacks 10 ships near Strait of Hormuz in response to US strikes, oil prices surge

We continue to receive supplies through the Strait of Hormuz, but this supply route is no more reliable," said a person privy to the refineries' production plans. "It can again be challenging if the transit through the strait is disrupted for a week." Current supplies through the Strait of Hormuz are a fraction of pre-war levels, when the route accounted for 90% of India's LPG imports.



The US and Iran have escalated attacks on each other's ships in recent days, dimming hopes of traffic returning to normal through the Strait of Hormuz, the critical waterway through which about a fifth of the world's crude oil and gas supplies transited before the war began on February 28. US President Donald Trump on Wednesday hinted at the possibility of oil prices staying high until the US mid-term elections in November.




Lower Domestic Consumption

India's LPG imports and consumption have significantly reduced since the start of the Iran war. LPG imports fell 25% year-on-year to 1.45 million tonnes in August, the highest monthly figure during this period, according to shipping data from Vortexa.

ET Bureau

Gas report

"Ample (global) LPG supply is not available," said Rohit Rathod, senior oil market analyst at Vortexa. "We are still about 0.6 million metric tonne below February 2026 levels and about 1.25 million metric tonnes down year-on-year in August when it comes to global seaborne LPG exports."



The import shortfall has largely been met by higher domestic production and lower consumption. Domestic LPG consumption was 17% lower year-on-year in August, with households, commercial users and industry all affected, according to the petroleum and natural gas ministry data. Bulk LPG consumption by industry has shrunk the most, plunging about 80% in July.



Also read: Shipping traffic via Strait of Hormuz stays below 10-day average, data shows



Some industry executives attribute part of the reduction to a shift to piped natural gas, diesel or wood pellets, while others point to informal supply curbs and demand destruction.



India had quickly ramped up domestic production to a peak of 54,000 tonnes per day in May from about 36,000 tonnes per day before the war by reducing input supplies to other product streams such as petrochemicals.



But after shortages of plastics and other materials started showing up, LPG production was reduced. Production fell 19% month-on-month to 1.2 million tonnes in July, the latest month for which data is available, after the US-Iran truce allowed cargoes to move more freely through the Strait of Hormuz. In June, the average production was about 50,000 tonnes per day.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

(You can now subscribe to our WhatsApp channel)


Read More News on
India cooking gas productionliquefied petroleum gas (LPG)Strait of HormuzLPG imports reductiondomestic LPG consumptionglobal LPG supplypetrochemicals input reduction

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

ET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

Stories you might be interested in