India Sets LPG Production Targets Amid Supply Worries

The Indian government has set production targets for LPG (Liquefied Petroleum Gas) at refineries and upstream companies to build a domestic supply buffer after the West Asia conflict exposed the country's vulnerability to disruptions in imported cooking gas.

The order, issued on August 13 by the Petroleum and Natural Gas Ministry, sets maximum LPG production levels for 21 refineries and upstream companies. The combined production potential is set at 63,810 tonnes a day, more than double the domestic LPG output in the fiscal year ended March 31, 2026.

The lion's share of the planned output has been set from Reliance Industries Ltd's older refinery, which would have to produce up to 18,000 tonnes a day of LPG. This is more than half of the country's daily consumption of LPG, which stands at around 91,000 tonnes per day.

The new production framework aims to ensure that a future disruption to overseas LPG supplies does not translate into shortages and rationing seen during the recent crisis. The government has empowered itself to order refiners, oil marketing companies, and upstream producers to ramp up LPG production for specified quantities and periods whenever it considers such action necessary.