Reliance Industries Reduces Alkylate Output, Boosts LPG Production Amid West Asia Tensions

Reliance Industries has reduced production of alkylates and redirected feedstock to increase liquefied petroleum gas (LPG) output, as domestic supply remains under pressure, according to a Reuters report. The adjustment follows disruptions to imports linked to the Iran conflict. 

The company operates the world’s largest refining complex and typically exports alkylates, a petrol blending component, to the United States. These exports have been curtailed as production priorities shift. 

LPG Output Rises Sharply 

Reliance said LPG production has increased more than threefold compared with levels before the disruption. The additional output is being used to partly offset the decline in imports from the Middle East. 

India depends on imports to meet a large share of LPG demand. Around 90% of supplies have historically come from the region, leaving availability exposed to shipping and geopolitical risks. 

Government Directs Refiners to Increase Supply 

In March, the government asked refiners to maximise LPG production after shipments were affected by the closure of the Strait of Hormuz. The directive focused on maintaining supply for household consumption. 

Supplies to industrial users have been reduced in order to prioritise cooking fuel. The current shortage is among the most severe in recent years. 

Refinery Operations Adjusted 

Reliance’s alkylation unit is operating at minimum rates as feedstock is diverted towards LPG production. The company’s export-oriented refinery has a capacity of 704,000 barrels per day. 

The reduction in alkylate output shows a temporary change in refinery operations, with output aligned to domestic fuel requirements. 

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Reliance Industries Share Price 

As of May 5, 2026, 9:59 am, Reliance Industries Ltd share price was trading at ₹1,467.30, up 0.29% from the previous closing price. 

Conclusion 

The shift in production underlines how refiners are reallocating resources to manage supply constraints, with exports reduced to support domestic LPG availability. 

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