India Sets Domestic LPG Production Targets Amid Import Risks
The Indian government has introduced new measures to ensure domestic supply of cooking gas (LPG) after last year's West Asia conflict exposed the country's vulnerability to disruptions in imports. For the first time, maximum LPG production targets have been fixed for individual public and private sector refineries and upstream companies.
The Petroleum and Natural Gas Ministry has specified maximum LPG production levels for 21 refineries and upstream companies, with a combined potential of 63,810 tonnes per day, more than double the domestic output in FY26. The production limits will kick in whenever there is a supply constraint.
Reliance Industries' older refinery will have to produce up to 18,000 tonnes a day of LPG, the largest share of the planned output. India's exposure during the Hormuz crisis highlighted its import dependence, with over 64% of LPG sourced from abroad.
The government has empowered itself to direct refiners, oil marketing companies, and upstream producers to ramp up LPG production whenever necessary to ensure adequate domestic availability, equitable distribution, and fair pricing. The production schedule will be reviewed every six months to factor in output from new refineries and upgrades.