India Sets LPG Production Targets for Refineries Amid Import Risks

The Indian government has set production targets for liquefied petroleum gas (LPG) at individual refineries and upstream companies to ensure a domestic supply buffer in case of disruptions in imports.

The Petroleum and Natural Gas Ministry issued an order on August 13, specifying 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.

Reliance Industries Ltd's older refinery has been given the largest quota to produce up to 18,000 tonnes a day of LPG. This is part of the government's efforts to reduce dependence on imports and build a domestic supply buffer after the West Asia conflict exposed India's vulnerability to disruptions in imported cooking gas.

The production targets will kick in whenever there is a supply constraint, and companies must maintain adequate infrastructure for LPG storage, evacuation, and transportation. The government has also empowered itself to order refiners, oil marketing companies, and upstream producers to ramp up LPG production for specified quantities and periods when necessary.