India’s production of liquefied petroleum gas (LPG) has hit a record 52,000 tonnes per day (TPD) from roughly 46,000 TPD earlier this month as refineries such as Vadinar resumed operations after a maintenance shut down in April.
The current demand for the critical cooking fuel, which is used by more than 33 crore households, is around 72,000 TPD, lower than the normal demand of around 80,000 TPD, as LPG consumption generally declines during summers.
Sujata Sharma, Joint Secretary in Oil Ministry, said: “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.”
The growth in production is due to some refineries such as the Nayara Energy-operated Vadinar refiner, resuming operations after the maintenance shut down in April-May.
India’s average LPG production had declined to around 46,000-47,000 TPD in the first week of April compared to 50,000 TPD achieved in the last week of March.
Geopolitical situation
India’s LPG supply continues to be affected by the prevailing geopolitical situation in West Asia and the closure of the Strait of Hormuz (SoH), which has almost completely choked more than half of the country’s demand. The country imports 60 per cent of its domestic demand, of which 90 per cent comes from Middle East Gulf (MEG) region.
As per the International Energy Agency (IEA), closure of the SoH has adversely impacted 430,000 barrels per day (kb/d) of LPG cargoes during March-April 2026.
In March 2026, the volumes of LPG exported through the strait fell by around 80 per cent, dropping from 1.5 million barrels per day (mb/d) on average in 2025 to 0.3 mb/d.
Though India secured some supplementary supply from alternative sources, a vessel from the US needs around 40 days to reach Mumbai, compared with 4-5 days from the SoH.
Besides, the amount of LPG India can hold in storage, meanwhile, covers just over 10 days of consumption, providing only a limited buffer during supply disruptions.
Sharma also informed that the Ministry has directed the PSU oil marketing companies (OMCs) to enhance LPG storage to at least 30 days of demand.
“We are working on the strategic reserves. The OMCs have been asked to work out (a plan) to have LPG reserves for a minimum of 30 days with them, and they are working on it,” she added.