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HOCL said the disruption stems from a Government of India directive requiring public sector oil companies to channel LPG supplies exclusively toward domestic consumers.
HOCL cautioned that a prolonged LPG shortage could result in significant production losses.
Hindustan Organic Chemicals Ltd (HOCL) said it has been forced to reduce production at its Kochi manufacturing facility after a disruption in bulk liquefied petroleum gas supply from Bharat Petroleum Corporation Ltd (BPCL)- the latest industrial casualty of a government directive prioritising domestic LPG consumers amid tightening supply conditions.
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In a regulatory filing, HOCL said the disruption stems from a Government of India directive requiring public sector oil companies to channel LPG supplies exclusively toward domestic consumers. Acting on the directive, BPCL- which supplies bulk LPG to HOCL under an existing agreement- informed the chemical manufacturer that a force majeure event had occurred, effectively suspending its supply obligations.
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Buffer Stock Running Out
HOCL warned that its LPG buffer stock at the Kochi facility- its sole manufacturing unit- would be exhausted by Monday evening. In response, the company has already reduced the production load at its Phenol and Cumene plants and said it would temporarily shut down its PRU unit the same day. If supplies do not resume, other downstream units are expected to follow within two days. The Kochi plant manufactures phenol, acetone and hydrogen peroxide. The company said its hydrogen peroxide plant would continue to operate normally despite the supply disruption.
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Warning Of Cascading Costs
HOCL cautioned that a prolonged LPG shortage could result in significant production losses, as well as additional costs associated with safely shutting down and subsequently restarting plant operations- expenses that could weigh on the company’s financials if the situation is not resolved quickly.
Delhi, India, India
March 11, 2026, 18:21 IST
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