20 March, 2026 20:29:41 IST 
The disruption in supply of key feedstock propylene amid the Iran-US-Israel conflict has forced two more shutdowns –at the oxo-alcohols plant of Andhra Petrochemicals Ltd. (APL) and the phenol/acetone plant of Hindustan Organic Chemicals Ltd. (HOC).
APL said it suspended operations on March 17 at its Visakhapatnam plant after Hindustan Petroleum Corporation Ltd. (HPCL) halted propylene supply due to the ongoing conflict involving Iran, the US and Israel. Propylene is a key raw material, serving as the primary feedstock required for plant operations. The company added operations will resume once HPCL restores propylene supply.
HOC said that the Government of India’s directive to all public sector oil manufacturing companies to ensure that LPG is supplied exclusively to domestic LPG consumers has disrupted supplies to HOC, which has forced it to shut the propylene recovery unit, which feeds the phenol/acetone plant. The buffer stock of LPG available with HOC was fully utilized by March 9, 2026. However, the hydrogen peroxide plant will continue to operate.
The development highlights the impact of geopolitical tensions in West Asia on India’s petrochemical and downstream manufacturing supply chains, particularly where production depends on refinery-linked feedstock supplies.
