India’s production of liquefied petroleum gas (LPG) has reached a record high of 52,000 tonnes per day (TPD), an increase from approximately 46,000 TPD earlier this month, as refineries such as Vadinar resumed operations following a maintenance shutdown in April.
Currently, the demand for this vital cooking fuel, used by over 330 million households, stands at around 72,000 TPD, notably lower than the usual demand of about 80,000 TPD due to a seasonal decline in LPG consumption during the summer months.
Sujata Sharma, Joint Secretary in the Oil Ministry, stated, “We have sufficient stocks of petrol, diesel, and LPG. Adequate inventories of natural gas and crude oil have also been secured. All our refineries are operating at optimum levels, and LPG production is at an all-time high of around 52,000 TPD. No dry-out has been reported at LPG distributorships.”
This increase in production can be attributed in part to the Nayara Energy-operated Vadinar refinery resuming operations post-maintenance shutdown in April-May. India’s average LPG production had previously dipped to approximately 46,000-47,000 TPD in the first week of April, down from 50,000 TPD achieved in late March.
Geopolitical Situation
India’s LPG supply remains contingent on the current geopolitical dynamics in West Asia and the closure of the Strait of Hormuz (SoH), which has restricted over half of the country’s demand. Approximately 60% of India’s domestic demand is met through imports, with 90% of this supply originating from the Middle East Gulf (MEG) region.
The International Energy Agency (IEA) reported that the closure of the SoH has adversely affected 430,000 barrels per day (kb/d) of LPG shipments over the March-April 2026 period. In March 2026, LPG exports through the strait fell by roughly 80%, dropping from an average of 1.5 million barrels per day (mb/d) in 2025 to just 0.3 mb/d.
While India has managed to secure additional supplies from alternative sources, deliveries from the United States take around 40 days to reach Mumbai, compared to just 4-5 days from the SoH. Moreover, India’s current LPG storage capacity accommodates just over 10 days of consumption, offering limited relief during supply disruptions.
Sharma further mentioned that the Ministry has instructed public sector oil marketing companies (OMCs) to expand LPG storage capabilities to cover at least 30 days of demand. “We are working on the strategic reserves. The OMCs have been asked to work out a plan to maintain LPG reserves for a minimum of 30 days with them, and they are actively working on it,” she stated.
Published on May 29, 2026.
