India Sets LPG Production Targets to Reduce Import Dependence

The Indian government has set LPG production targets for refineries to maintain domestic supply and reduce dependence on imports. The Ministry of Petroleum and Natural Gas issued an order on August 13, setting a total LPG production capacity and target of 63,810 tonnes per day for 21 companies.

Reliance Industries Limited's Jamnagar Domestic-Tariff Area refinery in Gujarat has received the largest share, with a target to produce 18,000 tonnes of LPG daily. This is more than double the total domestic LPG production in FY 2025-26 (35,900 tonnes per day) and covers approximately 70% of the country's total daily consumption.

The government has taken this step after learning from the impact of Middle East tensions on LPG supply last year. In March, India faced a severe shortage due to a blocked Strait of Hormuz route, with only 13.1 million tons (35,900 tonnes per day) produced domestically and 21.3 million tons (58,400 tonnes per day) imported from abroad.