India Expands LPG Production Ahead of Upcoming Festival Season

India’s state-owned oil refiners have increased LPG production as demand for cooking gas starts rising during the festive season, as per news reports. Daily output is now around 44,000 tonnes, nearly 20% above the August average. 

Production had been cut after LPG shipments from the US and Africa began arriving during the summer. Supplies from Abu Dhabi National Oil Co. (ADNOC) through Oman’s Sohar port had also helped ease the supply situation. 

Household Demand Picks Up 

The increase in production comes as restrictions on LPG refills have been eased. Rural households were allowed to refill cylinders after 25 days in August 2026, compared with the emergency waiting period of 45 days introduced in March 2026. 

The festival season has started and will continue through Diwali in November 2026. Cooking gas consumption is expected to increase during this period, although total demand is likely to remain about 10% below last year. 

Industrial LPG demand has not fully returned after being hit during the war. Household supplies had been given priority during that period, leaving industrial consumption lower than before. 

Persian Gulf Shipments Disrupted 

Imported supply remains uncertain because of continued disruption in the Persian Gulf. One September cargo meant for Bharat Petroleum Corp. and two for Indian Oil Corp., all from ADNOC, could not be collected, as per news reports. 

ADNOC has said it will provide its committed October 2026 supplies. The planned shipments include five cargoes for Indian Oil and three each for BPCL and Hindustan Petroleum Corp. 

US Becomes Larger Supplier 

India is also buying more LPG from the US. American supplies accounted for about 6% of India’s LPG imports last year, but the share has now risen above 20%. 

State refiners could seek term supplies from the US covering as much as 20% of India’s LPG imports next year. India signed its first term LPG supply agreement with the US last year as part of efforts to reduce dependence on Middle Eastern supplies. 

Read More: ADB Revises India Growth Outlook; FY27 Forecast at 7%, FY28 at 7.1%! 

Conclusion 

LPG production has risen as festival-related household demand increases. At the same time, refiners are looking at additional US supplies while shipments from the Persian Gulf remain uncertain. 

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