New Delhi: In a significant move to bolster domestic cooking gas supplies and reduce import dependency, the Indian government has established specific maximum LPG production targets for all public and private sector refineries and upstream companies. This initiative follows recent global events that highlighted the nation’s vulnerability to disruptions in imported cooking gas supplies.
Information was available with The Chenab Times that the Ministry of Petroleum and Natural Gas issued an order on August 13, setting daily LPG production limits for 21 refineries and upstream entities. The combined potential output has been capped at 63,810 tonnes per day, a figure more than double the domestic LPG production recorded in the fiscal year ending March 31, 2026, and approximately 70 per cent of the country’s total daily consumption.
These production limits are designed to be activated whenever supply constraints arise. The largest share of the mandated production has been allocated to Reliance Industries Ltd’s older refinery, which is required to produce up to 18,000 tonnes of LPG per day, according to the directive.
India’s LPG consumption stood at 33.2 million tonnes in the 2025-26 fiscal year, averaging around 91,000 tonnes daily. Of this, local production accounted for 13.1 million tonnes annually (approximately 35,900 tonnes per day), while the remaining 21.3 million tonnes per annum (around 58,400 tonnes per day) was imported. This substantial import reliance, exceeding 64 per cent, left the nation exposed during a period when the conflict in West Asia impacted shipping routes, including the Strait of Hormuz, through which India receives 90 per cent of its imports from countries like Saudi Arabia.
In response to the supply chain issues, the government had previously ordered refineries in March to divert streams used for petrochemicals production to maximize LPG output. Initial measures also included a temporary halt to sales to industrial and commercial users, followed by a gradual resumption. For domestic consumers, the frequency of refill bookings was extended, and incentives were provided for transitioning to piped natural gas, which experienced less severe supply disruptions due to the conflict.
During the peak of the crisis, domestic production was increased to approximately 55,000 tonnes per day. However, these emergency directives were progressively withdrawn as supplies stabilized from mid-June.
The latest order extends beyond the emergency measures by establishing facility-specific production benchmarks and mandating that refineries and upstream companies maintain adequate infrastructure for LPG storage, evacuation, and transportation. Companies are also required to pursue technically and economically feasible upgrades to enhance production capacity.
The government has been granted the authority to direct refineries, oil marketing companies, and upstream producers to increase LPG production to specified quantities and durations whenever deemed necessary to ensure sufficient domestic availability, equitable distribution, and supply at fair prices. The production schedule will undergo a review every six months, allowing for adjustments to incorporate output from new refineries and upstream fields, as well as additional capacity from technological and infrastructure enhancements.
The directive also encourages refiners to explore options such as converting naphtha into LPG and upgrading fluid catalytic cracking units where technically and economically viable, underscoring the government’s commitment to maximizing LPG extraction from existing refining infrastructure.
Under the new framework, 18 refineries operated by public sector oil companies have been instructed to collectively produce 31,470 tonnes per day. In the private sector, Reliance’s domestic-tariff area (DTA) refinery in Jamnagar, Gujarat, has been assigned a target of 18,000 tonnes per day. No production target has been set for Reliance’s export-only refinery at the same location. Nayara Energy’s Vadinar refinery has been tasked with producing 4,480 tonnes per day. Upstream gas producers such as ONGC and GAIL are collectively targeted to produce 6,460 tonnes per day of LPG from natural gas.
The order explicitly states that all public sector, joint venture, and private sector oil refining companies, along with upstream oil companies, must develop and maintain adequate infrastructure for LPG storage, evacuation, and transport. They are also mandated to implement technically and economically feasible measures to maximize LPG production, including naphtha-to-LPG conversion and upgrading fluid catalytic cracking units, with proper notification to the Centre for High Technology or any authorized agency.
The Ministry further noted that if the Central Government deems it necessary in the public interest to ensure adequate availability, equitable distribution, and fair pricing of domestic LPG, it may issue written directives to oil refining companies, oil marketing companies, and upstream oil companies to ramp up LPG production for specified quantities and periods, potentially including restrictions on alternative uses of input streams.
Companies receiving such directions will be required to increase LPG production within the stipulated timeframes. The production schedule is slated for updates on January 1 and July 1 annually, accounting for new capacity and technological advancements.
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The Chenab Times News Desk
