India Sets Maximum LPG Production Targets for Domestic Supply Buffer

The Indian government has issued an order to set maximum LPG production levels for 21 refineries and upstream companies, aiming 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 specified maximum LPG production levels, with combined production potential set at 63,810 tonnes a day - more than double the domestic LPG output in the fiscal year ended March 31, 2026 and about 70 per cent of the country's daily consumption.

Reliance Industries Ltd's older refinery has been ordered to produce up to 18,000 tonnes a day of LPG. The government aims to reduce imports and ensure adequate domestic availability, equitable distribution, and supply at fair prices.

The production schedule will be reviewed every six months, allowing the government to add output from new refineries and upstream fields and account for additional capacity created through technology and infrastructure upgrades.