Indian Oil Corporation has increased LPG output by nearly 30% and exceeded normal refinery operations as tensions in the Strait of Hormuz threaten fuel supplies, demonstrating India’s efforts to mitigate supply disruptions amid geopolitical instability.
Indian Oil Corporation said it lifted liquefied petroleum gas output by almost 30% and pushed refinery runs above full capacity as tensions around the Strait of Hormuz threatened India’s fuel supplies, underscoring how exposed the country remains to disruption in the Gulf. According to company chairman Arvinder Singh Sahney, the state-run refiner responded by diversifying crude purchases, reshaping plant operations and lining up alternative cargoes to keep fuel moving despite volatile markets. Business Standard reported that Sahney set out the response at the company’s annual general meeting.
India imports more than 88% of its crude oil requirement, and roughly 45% of those crude imports, as well as nearly 90% of LPG imports, are tied to the Strait of Hormuz, making any disruption there a direct risk to the country’s energy security. Sahney said Indian Oil used round-the-clock control rooms, daily reviews and live market tracking to bridge supply gaps and shift away from Middle Eastern crude grades while keeping product availability intact. Mid-Day and IBC24 said the company also secured additional liquefied natural gas supplies from a wider range of producing regions.
The operational push came alongside strong financial and production figures. For the year ended March 2026, Indian Oil posted standalone net profit of ₹36,802 crore on turnover of about ₹8.86 trillion, while refining throughput hit a record 75.45 million tonnes and domestic product sales reached an all-time high of 88.97 million tonnes, according to the company. In the first quarter of the current financial year, it processed 19.17 million tonnes of crude at 109.4% capacity utilisation and lifted its domestic market share to 43.1%.
Indian Oil is also stepping up investment to reduce reliance on its core refining business. Expansions at Panipat, Gujarat and Barauni are expected to raise group refining capacity to about 98 million tonnes a year from 80.75 million, while the company is targeting a larger role in petrochemicals, natural gas, renewables, biofuels, green hydrogen and sustainable aviation fuel. Reuters-style reporting from Business Standard also noted that the government has pressed state fuel retailers to expand LPG storage to at least 30 days of demand, reflecting broader concern about supply shocks after the West Asia crisis.
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