India Sets LPG Production Targets Amid Supply Concerns

The Indian government has issued an order to fix LPG production targets for refineries and upstream companies to ensure domestic availability in case of supply constraints. The maximum LPG production levels for 21 refineries and upstream companies have been set at 63,810 tonnes a day.

This is more than double the domestic LPG output in the fiscal year ended March 31, 2026, and about 70% of the country's daily consumption. The government aims to prevent shortages and rationing seen during the recent crisis caused by the disruption of overseas LPG supplies due to the Iran war.

The production limits will kick in whenever there is a supply constraint. Eighteen refineries owned and operated by public sector oil companies have been ordered to produce a total of 31,470 tonnes a day.