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Indian LPG Reversal Shows Peril of Buying Fuel in a Pandemic

  • Refiners have canceled five cargoes after buying too much
  • Demand for the gas spiked as India went into lockdown
Oil Facilities And Services Ahead Of Final Year Figures After Demonetization Induced Fluctuation
Photographer: Dhiraj Singh/Bloomberg
Updated on

India has canceled orders for multiple cargoes of liquefied petroleum gas just weeks after going on a buying spree as the nation went into lockdown, highlighting the difficulty of assessing fuel demand in a pandemic.

The nation’s three biggest state-owned refiners have negotiated the cancellation of at least five cargoes of the fuel due to arrive in May and June with term suppliers in the Middle East, according to traders and company officials. The processors were left with too much LPG after over-estimating demand and ramping up purchases in late March and early April.