India Boosts Domestic LPG Output to Counter Strait of Hormuz Disruptions

Daily output averaged 44,000 tons throughout September, a significant jump from August levels. While India has actively diversified its supply chain by sourcing more fuel from the United States and Africa, the reliance on the Middle East remains critical. The United Arab Emirates continues to serve as India's primary supplier, utilizing pipeline bypasses to Fujairah and smaller tanker shuttles to circumvent the Persian Gulf's maritime chokepoints.

ADNOC recently assured Indian buyers that October delivery contracts will be fulfilled in full despite ongoing regional volatility. However, the broader energy picture remains complex. High costs and supply instability have led to notable demand destruction within India’s industrial sector, likely keeping total consumption below last year's figures. With roughly 60% of Indian households dependent on LPG for cooking, the pressure remains on state refiners to maintain domestic output levels as global logistics struggle to normalize.