India Sets LPG Production Targets Amid Import Risks

The Indian government has set maximum LPG production targets for refineries and upstream companies to strengthen domestic supplies, following the West Asia conflict that exposed India's heavy dependence on imports. Under a Petroleum and Natural Gas Ministry order, 21 refineries have been assigned a combined production potential of 63,810 tonnes per day.

Reliance Industries' Jamnagar refinery has received the largest allocation at up to 18,000 tonnes daily, while public-sector refineries were assigned a combined 31,470 tonnes per day. Upstream producers and processors have collectively been assigned 6,460 tonnes daily.

The new framework requires companies to maintain adequate LPG storage and undertake economically viable upgrades, including naphtha-to-LPG conversion. The government can order producers to increase output when necessary to protect domestic availability and fair pricing.