India Sets Daily LPG Production Cap at 63,810 Metric Tonnes Amid Supply Disruptions
India's government has set a maximum daily LPG production capacity of 63,810 metric tonnes across state-run and private refineries and upstream oil companies. This move is aimed at protecting domestic cooking gas supplies and building buffers against potential supply shocks.
The decision comes after the US-Israeli war against Iran disrupted supplies of liquefied petroleum gas (LPG). The government has given itself powers to ask oil companies to raise LPG output when required, and has also established a mechanism to revise the production schedule every year on January 1 and July 1.
Reliance Industries Ltd. has the largest individual share in LPG production capacity at 18,000 metric tonnes per day, accounting for about 28.2% of the total capacity. Other major producers include Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Mangalore Refinery and Petrochemicals Limited (MRPL).