By Sadananda Mohapatra, Senior Business Journalist
Lead Story: India Declares LPG Crisis Over. The Numbers Suggest Caution.
India’s government has ended the last formal rationing measure on household cooking gas. On Tuesday, September 8, it cut the mandatory booking gap for rural LPG consumers from 45 days to 25 days, aligning it with the urban rule for the first time since March. The ministry said supply had improved and refill backlogs had fallen. In effect, the acute phase of the crisis that began when the Strait of Hormuz effectively closed is being declared over.
The numbers show a more cautious picture.
August consumption rose to 2.42 million tonnes, the highest in six months and the third successive monthly increase. Yet the figure remains 16% below August 2025. The April to August period totalled 11.3 million tonnes, almost 16% lower than the same period last year. The recovery is real. It is also incomplete.
The supply disruption from West Asia tensions reached most Indian kitchens directly. The government responded by turning to domestic production. In March, refineries were ordered to divert petrochemical streams into the LPG pool, lifting domestic output by 28% within days. By August, the Ministry of Petroleum had gone further, issuing India’s first ever facility-wise mandatory LPG production targets for 21 refineries and upstream companies. The combined daily target stands at 63,810 tonnes, equivalent to roughly 70% of India’s daily consumption and more than double the domestic output recorded in the financial year ending March 2026. Reliance Industries carries the largest individual quota at 18,000 tonnes per day. The targets remain in force through December 2026.
This combination of domestic production mandates, diversified imports from the United States, West Africa and Oman, and strict rationing through booking intervals has held the supply chain together through six months of disruption. The removal of the 45-day rural restriction is the government’s signal that the emergency tools are no longer needed at full intensity.
The question that remains is whether the missing 16% of consumption will return. As imports normalise and domestic production targets hold, the physical supply is there. Whether higher prices, temporary switches to electric cooking and the accelerating push toward piped natural gas leave a permanent mark on India’s LPG demand curve is the story the next six months will answer.
Joules Capsule: Weekly Round-Up
NHPC Posts Record Monthly Generation as Hydro Capacity Recovers
India’s state-owned hydropower company NHPC recorded its highest ever monthly generation of 4,695 million units in August 2026, surpassing the previous record set just a month earlier in July. Three capacity additions drove the jump: the 800 megawatt Parbati-II project coming online, an additional 250 megawatts at the Subansiri Lower station in May taking its total contribution to 1,000 megawatts, and the restoration of the 510 megawatt Teesta-V station in Sikkim, which had been offline since the October 2023 floods. NHPC’s total operational capacity now stands at 7,651 megawatts across hydro, solar and wind. The timing matters: the record came during peak monsoon inflows, when hydro generation is at its seasonal best, and provides a welcome counterpoint to the grid stress that defined India’s summer.
Indian Crude Basket Crosses USD 100 as West Asia Tensions Return
The Indian crude basket crossed USD 100 per barrel on September 4, reaching USD 101.07, its highest level since May, as renewed hostilities between the United States and Iran pushed global benchmarks sharply higher. The September average so far stands near USD 99.38 per barrel, up from USD 90 in August and USD 82 in July, reflecting a steady climb as geopolitical pressure on shipping routes intensified through the month. Freight rates on key Gulf-to-India routes have soared over 400% since February. Refinery executives confirmed one to two cargo delays from the region but said supplies through September and October are broadly secured through alternative sources.
August Grid Sets New Monthly Record, But Evening Shortages Persist
India’s power grid set a new August record of 258.27 gigawatts of peak demand, up 12.4% year on year, as the country experienced its warmest August since 1901. Total energy demand for the month rose 13% to 169 billion units, with thermal power supplying the bulk at 116.8 billion units and renewables contributing 35.3 billion units. The grid met its daytime peaks without major shortfalls but evening shortages of one to two gigawatts persisted as solar generation dropped away after sunset. Coal stock at power plants provided only around 9.3 days of cover against the required level, flagging supply chain tightness as the key near-term operational risk heading into September.
About the Author:
Sadananda Mohapatra is a veteran business journalist with decades of experience covering India’s emergy, industry, and economic landscape. With stints at reputed financial news publications like The Business Standard & NewsWire18, he reported extensively on India’s power sector, minerals policy, coal and energy regulation, and industrial developments — building a deep, ground-level understanding of the global energy economy. His work spans corporate affairs, infrastructure, and policy analysis, with a particular focus on eastern India’s resource-rich industrial corridor. He currently writes on the global energy landscape through his newsletter, The Joule’s Stack.
