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Reliance boosts LPG output as India faces gas shortage amid Hormuz disruption
2026-05-05 · via Business News Today: Latest Business News, Finance News
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Reliance cuts alkylate output to boost LPG production amid India gas shortage

LPG output has risen more than threefold, helping offset reduced imports from the Middle East, which accounts for about 90% of India’s supply

By Reuters

Updated - May 05, 2026 at 07:13 AM.

| NEW DELHI

Reliance Industries has reduced alkylate output and redirected feedstock to sharply increase LPG production as India faces a severe cooking gas shortage triggered by disruptions linked to the Strait of Hormuz amid the Iran war.

Reliance Industries has reduced alkylate output and redirected feedstock to sharply increase LPG production as India faces a severe cooking gas shortage triggered by disruptions linked to the Strait of Hormuz amid the Iran war. | Photo Credit: H.VIBHU

​India's Reliance Industries is cutting output ‌of alkylates and diverting feedstock to ​ramp up production of ⁠liquefied petroleum gas (LPG) as India battles shortages of the cooking fuel due to ‌the Iran war, the company said on Monday.

The operator ‌of the world's biggest ‌refining ⁠complex is running its alkylation ⁠unit at minimum rates, curtailing exports of the gasoline-blending component.

Reliance typically exports alkylates to ​the U.S. ‌from its 704,000 barrels-per-day export-focused refinery.

The company said LPG production has increased more than threefold from pre-war ‌levels.

"This has been done to ​bridge part of the gap in loss of ⁠LPG imports from Middle Eastern countries," the company said in a statement to ‌Reuters.

In March, the federal government directed refiners to maximise LPG production as India faced shortages after the closure of the Strait of Hormuz.

India, the world's ‌second-largest LPG importer, is grappling with its worst ​gas crisis in decades, with the government cutting supplies ⁠to industry to protect household cooking ⁠fuel needs.

The country had relied on the Middle East for ‌about 90% of its LPG imports.

Published on May 5, 2026

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