India Sets LPG Production Targets for Refineries Amid Supply Concerns

The Indian government has set production targets for individual refineries and upstream companies to build a domestic supply buffer of liquefied petroleum gas (LPG) after the West Asia conflict exposed India's vulnerability to disruptions in imported cooking gas. The Petroleum and Natural Gas Ministry issued an order on August 13, setting 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 India's 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 for Reliance Industries Ltd's older refinery, which would have to produce up to 18,000 tonnes a day of LPG. This is part of the government's effort to ensure adequate domestic availability and equitable distribution of LPG at fair prices. The order requires refiners to maintain adequate infrastructure for LPG storage, evacuation, and transportation and to pursue technically and economically feasible upgrades to maximise output.

The government has also empowered itself to order refiners and upstream companies to ramp up LPG production whenever necessary to ensure adequate domestic availability. The production schedule will be reviewed every six months to account for additional capacity created through technology and infrastructure upgrades. The new framework is aimed at preventing shortages and rationing in the event of a future disruption to overseas LPG supplies.