Indian Oil Ramps Up LPG Production Amid West Asia Conflict

The Indian Oil Corporation increased its liquefied petroleum gas production by nearly 30 percent and maintained refinery utilization above 100 percent to counter supply disruptions caused by conflict in West Asia. During the company's 67th annual general meeting, Chairman Arvinder Singh Sahney explained that the company diversified crude sourcing and secured alternative supplies to maintain energy continuity as maritime trade through the Strait of Hormuz was impacted.

These operational shifts were implemented under the guidance of the Ministry of Petroleum and Natural Gas to reduce India's reliance on the Strait of Hormuz, a critical corridor through which nearly 90 percent of the country's LPG and 45 percent of its crude imports flow.

Despite pressure on quarterly profitability resulting from higher crude costs, the company reported a standalone net profit of Rs 36,802 crore for the year ended March 2026. To further strengthen its infrastructure, the company is currently expanding refining capacities at Panipat, Gujarat, and Barauni.