Indian state-controlled oil marketing companies have raised commercial LPG cylinder prices for August after cutting prices for four consecutive months since April. A 19kg commercial LPG cylinder in Delhi now costs 1,652.5 rupees ($20), up by Rs6.5 from a month earlier, and in Mumbai costs Rs1,605, up by Rs7 from a month earlier. Prices in Kolkata rose by Rs8.5 to Rs1,764.5, while prices in Chennai rose by Rs7.5 to Rs1,817, state-controlled refiner IOC's website shows. Prices for 14kg residential cylinders remained at Rs803 in Delhi, Rs802.50 in Mumbai, Rs829 in Kolkata and Rs818.50 in Chennai.
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NWE propane heads for sharpest weekly gain on record
NWE propane heads for sharpest weekly gain on record
London, 6 March (Argus) — The northwest European large cargo propane price is heading for a weekly gain of more than $160/t, the biggest on record, after hitting a three-year high on Thursday. The Amsterdam–Rotterdam–Antwerp (ARA) large cargo propane assessment climbed to $718.50/t on 5 March, the highest since January 2023. That extended a rally that began with the war between the US, Israel and Iran, which has effectively shut the strait of Hormuz. Around 30pc of global seaborne LPG exports pass through the strait of Hormuz, meaning a prolonged disruption would tighten global balances and heighten competition for alternative cargoes, particularly from the US. Prices jumped $87/t on Monday and by nearly $64/t on Tuesday. The pace of increases has eased, but upward momentum appears likely to continue. Previously, the largest weekly increase at the end of February 2022, of $121/t, just days after Russia's full–scale invasion of Ukraine. Resulting supply tightness then pushed regional prices to nearly $1,000/t, settling at $995.25/t. European cif ARA propane paper for March was trading at $680–690/t on Friday morning, around $15–20/t above Thursday's $665/t settlement. The equivalent AFEI paper was up by about $15/t at $750/t. Strength in the paper market reflects tightening global fundamentals and renewed buying interest in the large cargo physical market. Two buyers reappeared on Thursday seeking spot propane, having made several attempts earlier in the week, all unsuccessful. This repeat presence suggests buying interest is likely to persist, which could push the physical premium above already-elevated propane swaps. The sharp rise in European paper and physical prices has already far exceeded the response to Middle Eastern hostilities during a 12-day escalation in June 2025, when European propane gained only $40–50/t. This year's effect has been amplified by pre-existing supply constraints. Saudi state-controlled Aramco had already declared force majeure on LPG loadings from its Juaymah NGL facilities, which supply the Ras Tanura export terminal. Supply constraints are emerging elsewhere. US propane inventories rose by 819,000 bl in the latest reporting week, pushing stocks to 54pc above the five-year average for the time of year. Earlier weather-related disruptions to US export operations have contributed to congestion at key terminals, limiting available loading slots and slowing the movement of cargoes into the international market. By Efcharis Sgourou Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India urges refiners to prioritize LPG output
India urges refiners to prioritize LPG output
Mumbai, 6 March (Argus) — The Indian government has asked oil refiners to prioritise the use of propane and butane streams for LPG production to ensure adequate domestic cooking gas supply, instead of using them as petrochemical feedstock, an official document seen by Argus shows. State-run IOC, BPCL, and HPCL have been asked not to divert, utilize, process, crack, convert or otherwise employ propane and butane streams for manufacturing of petrochemical products or other downstream products, the document shows. India's LPG output meets close to 40pc of its consumption of around 33mn t in 2025, oil ministry data show. Propane and butane are key feedstocks for propylene and ethylene production in the country. As part of India's Essential Commodities Act, New Delhi has also directed oil marketing companies to supply or market all procured LPG solely to domestic LPG consumers. The development has come in the backdrop of a supply shortage of the cooking fuel after several LPG time charters carrying the fuel have failed to transit the strait of Hormuz over the last five days. India is close to exhausting its 10-day buffer of LPG stocks to cover demand as the US-Iran conflict has effectively dried up exports from the region, traders said. Limited terminal capacity in India has put a cap on the country's stockpiling while its reliance on LPG imports to meet booming consumption has increased in recent years, market participants said. Supply curtailments from the Mideast makes India's overly exposed to LPG supply risk as the region accounted for 90pc, or 21.53mn t, of India's LPG imports in 2025 despite an increase in US supplies . Around 95pc of these Middle Eastern supplies transit the strait of Hormuz, according to ship tracking firm Kpler. Indian LPG importers were seeking prompt LPG deliveries. A tender issued by Indian importer HPCL on 25 February for up to 20,000t of flexible ratio LPG to be delivered every month over March to December on a cfr basis was expected to provide the first public indication of delivered premiums against the CP. The tender closed on 3 March and was reported to have gone unawarded. The government directive is also likely to weigh on petrochemical output, as LNG supply to the sector remains under pressure after state-run Petronet passed a force majeure note to its offtakers. Only one out of Petronet's three captive LNG tankers plying between India and the Middle East, has managed to unload LNG at the 17.5mn t/yr Dahej terminal. India, which still imports a large share of its polymer needs from the Middle East, is staring at supply tightness following a near halt in shipments from the Gulf Cooperation Council nations. ONGC Petro Additions (Opal) — the petrochemical arm of state-owned upstream firm ONGC — said on Thursday that supply disruptions caused by the ongoing Iran war have impacted production at its Dahej plant on the west coast of India. Indian producers such as Indian Oil Corporation, HPCL-Mittal Energy Limited (HMEL), and GAIL's plants are also likely to get affected, a market participant said. By Rituparna Ghosh and Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU says no gas or oil supply concerns from Iran war
EU says no gas or oil supply concerns from Iran war
London, 4 March (Argus) — There are no oil or gas supply concerns yet in the EU as a result of the spreading war in the Mideast Gulf, the European Commission said today. The de facto closure of the strait of Hormuz, the world's most important waterway for oil exports at the mouth of the Mideast Gulf, is likely to cause shortfalls of crude, LNG and other commodities. But the commission said its gas and oil co-ordination groups met today and concluded there are no "immediate security of supply risks". No emergency oil stocks have been released and gas storage levels are stable, it said. Price moves in energy markets since the start of the US-Israel military campaign against Iran on 28 February have been suggesting some concern about future supply shortfalls, with front-month Ice Brent crude up by more than $10/bl since the start of the week and the front-month contract at the Dutch TTF gas hub up by more than 50pc at one point this week. Notably, European jet fuel values tripled in early swaps trading earlier today, making historic gains, having already been at record highs at the market close yesterday, 3 March. Europe's gas prices are rising because the shutting-in of Qatari LNG tightens supply globally . The level of future shortfalls are entirely dependent on how long the strait remains out of bounds for shipping. The US has suggested some remedies , but it is unclear how and when these will be put into action. The commission said today it will reassess the situation "in case of a prolonged closure" of the strait of Hormuz, but it did not say how it defines 'prolonged'. By Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Hormuz naval escort unlikely in the near-term: SSY
Hormuz naval escort unlikely in the near-term: SSY
London, 4 March (Argus) — A US plan for its navy to escort ships heading through the strait of Hormuz is unlikely to come to fruition any time soon because the fleet will be occupied with military operations, according to analysts at shipbroker SSY. Traffic through the strait, the world's most critical oil and LNG shipping lane at the mouth of the Mideast Gulf, has almost entirely stopped, with insurers unwilling to cover transit since Iran said it will "burn" any ship that tries to pass. A container ship was struck today in the strait, UKMTO said. US president Donald Trump stated on 3 March that "if necessary, the United States Navy will begin escorting tankers through the strait of Hormuz, as soon as possible." Europe is also looking at naval operations in the region, with French president Emmanuel Macron announcing on Tuesday the creation of a coalition to secure traffic through Hormuz. But SSY said the US Navy "has privately told the industry it will lack escort capacity until the initial stage of the military operation is complete. An additional issue is that US law does not allow the country's navy to escort ships that are not US-flagged or -owned, or have no US crew, the firm said. In addition to the legal issues, SSY pointed to the difficulty of actually protecting shipping in the strait. "Physical geography favours the attacker," it said. "[Shipping] lanes are 2 [nautical miles] wide each direction; vessels transit at 10–12 knots and must turn at the narrowest point adjacent to Iranian islands. "A destroyer can intercept missiles but cannot simultaneously sweep mines, counter drone-boat swarms from multiple bearings, and manage GPS disruption," SSY said. The firm pointed to recent US operations in the Red Sea at the height of attacks by Yemen-based Houthi militants, where "escorts failed to restore commercial traffic despite ~400 drones/missiles downed". But, SSY said, pressure to restore normality is greater this time, which could lead to a significantly different military strategy. By John Ollett and Andrey Telegin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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