India Sets LPG Production Targets for Refineries After West Asia Conflict

The Indian government has set production targets for individual refineries to build a domestic supply buffer after the West Asia conflict exposed the country's vulnerability to disruptions in imported cooking gas.

The Petroleum and Natural Gas Ministry issued an order on August 13 specifying maximum LPG production levels for 21 refineries and upstream companies, with combined production potential 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 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. The government aims to ensure that a future disruption to overseas LPG supplies does not translate into shortages and rationing.

The new production framework is aimed at maintaining adequate infrastructure for LPG storage, evacuation, and transportation, and requiring refiners and upstream companies to pursue technically and economically feasible upgrades to maximise output. The government has empowered itself to order refiners to ramp up LPG production for specified quantities and periods whenever necessary.