Indian state-owned refiners have increased liquefied petroleum gas (LPG) production as the festive season lifts demand for cooking fuel while conflict in the Persian Gulf disrupts contracted supplies. Domestic output has reached about 44,000 t a day, according to a Bloomberg report, nearly 20 per cent above the August average.

India, the world’s second-largest LPG importer, previously sourced most of its supplies from the Persian Gulf. That concentration left the country vulnerable to conflict and trade disruptions, prompting the government and refiners to seek alternative cargoes and increase domestic production.

Refiners had reduced output from wartime highs after shipments from the US and Africa began arriving during the summer. Abu Dhabi National Oil Company (ADNOC) also started supplying cargoes through Oman’s Sohar port, allowing refiners to ease domestic production before output rose again in response to changing demand conditions.

Consumption is being supported by the easing of measures introduced to manage supply. Rural households were told last month that they could refill cylinders after 25 days, compared with the emergency 45-day interval imposed in March. Officials attributed the change to improved availability and reduced backlogs.

Festive demand is expected to continue through Diwali in November, while winter conditions generally provide an additional boost to LPG consumption. Demand is still projected to remain 10 per cent below the same period last year because industrial consumption curtailed during the conflict has not fully recovered. Supply pressure has also increased after one September cargo for Bharat Petroleum (BPCL) and two for Indian Oil could not be collected from ADNOC. The producer has indicated that it will provide committed October volumes, including five cargoes for Indian Oil and three each for BPCL and Hindustan Petroleum, supporting India’s efforts to maintain energy security.