Japan's faltering LPG demand has brought greater competition between importers and local refineries for customers — where once that competition was virtually non-existent. LPG supply from domestic refineries is rising because of reduced use of the fuel for refinery operations. But demand continues to fall as consumers turn to town gas and electricity. Japanese refiners have aggressively cut operations in response to falling demand for products. Lower refinery runs have cut LPG output, but its reduced use as thermal feedstock for refining operations is offsetting the overall cut in production. This is forcing refiners to increase sales of refined LPG to the domestic market — in competition with LPG importers.
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