India Increases Refinery Output Amid Ongoing Cooking Gas Crisis
India ramps up refinery output to cope with enduring cooking gas crisis
Business Standard
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India is ramping up its refinery output to combat a severe shortage of cooking gas caused by the ongoing conflict in Iran. Daily production has surged to approximately 46,000 tons, with plans to reach 50,000 tons soon, but the country still struggles to meet pre-crisis demand of 100,000 tons daily.
- 01India's LPG production has increased by over 20% since the onset of the crisis.
- 02The country is set to receive record LPG imports from the US, totaling 471,000 tons this month.
- 03State refiners have cut commercial LPG supplies to protect household consumers.
- 04Panic buying and price gouging have led to government raids and arrests.
- 05The crisis is affecting the economy, with visible impacts on restaurant operations and living costs.
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India is facing an acute shortage of liquefied petroleum gas (LPG) due to the ongoing conflict in Iran, which has disrupted supply chains. In response, the Indian government has increased refinery output by over 20% since February, reaching approximately 46,000 tons per day, with plans to boost this to 50,000 tons following maintenance at Nayara Energy Ltd.โs refinery. Despite these efforts, the country still falls short of the pre-crisis demand of 100,000 tons daily. The government has secured an additional 650,000 tons of LPG for May, including record shipments from the US. To manage the crisis, state refiners have cut commercial LPG supplies to 70% of normal levels, prioritizing households. The situation has led to longer refill times for LPG cylinders, increased prices, and panic buying among consumers. Protests have erupted over rising living costs, and the government has conducted nearly 150,000 raids to combat price gouging. As India seeks to normalize supply chains, the impact of the crisis continues to ripple across the economy.
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The LPG shortage is significantly affecting household cooking costs, leading to increased prices and reduced availability of cooking gas, which in turn impacts daily life and economic activities.
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