Reliance Industries Cuts Alkylate Output Amid LPG Shortages
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 04 2026
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Source: Newsfilter
- Production Adjustment: Reliance Industries is cutting alkylate output and diverting feedstock to increase liquefied petroleum gas (LPG) production in response to shortages caused by the Iran war, demonstrating the company's agility in adapting to market changes.
- Surge in LPG Production: The company reported that LPG production has more than tripled from pre-war levels, aimed at bridging the gap from lost LPG imports from Middle Eastern countries, ensuring supply for household cooking fuel.
- Government Directive Response: The Indian federal government has directed refiners to maximize LPG production to address shortages following the closure of the Strait of Hormuz, reflecting the government's strong commitment to safeguarding public welfare.
- Market Dependency: As the world's second-largest LPG importer, India relies on the Middle East for about 90% of its LPG imports, currently facing its worst gas crisis in decades, forcing the government to cut supplies to industry to protect household needs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
