Noida, Aug 16 (APAC Media): The Centre has, for the first time, set facility-wise maximum production targets for liquefied petroleum gas (LPG) at public and private sector refineries and upstream companies, a move aimed at strengthening domestic supplies and reducing the country’s dependence on imported cooking gas during supply disruptions.
According to an order issued by the Petroleum and Natural Gas Ministry on August 13, production targets have been prescribed for 21 refineries and upstream companies.
Together, these facilities have a potential LPG production capacity of 63,810 tonnes per day, more than twice India’s domestic LPG output in 2025-26 and equivalent to about 70 per cent of the country’s daily consumption.
Reliance Industries has been assigned the largest individual target. The government has directed Reliance Industries’ 33-million-tonne-a-year refinery in Jamnagar, Gujarat, which operates in the domestic tariff area, to produce up to 18,000 tonnes of LPG per day when supply constraints arise. No target has been fixed for Reliance’s separate 35.2-million-tonne-a-year export-orientated refinery at Jamnagar.
The new framework follows major supply disruptions during the recent West Asia conflict, which highlighted India’s heavy reliance on overseas LPG supplies.
India consumed around 33.2 million tonnes of LPG in 2025-26, equivalent to nearly 91,000 tonnes a day. Domestic production stood at about 13.1 million tonnes, while imports accounted for roughly 21.3 million tonnes, meaning more than 64 per cent of total consumption was met through overseas supplies.
During the crisis, the government directed refiners to divert streams normally used for petrochemical production towards LPG. Authorities initially restricted supplies to certain commercial and industrial consumers, prioritising household cooking-gas requirements.
Domestic LPG production climbed to nearly 55,000 tonnes per day at the peak of the disruption. Emergency measures were later scaled back as international supplies improved from mid-June.
Under the latest arrangement, 18 public-sector refineries have been assigned a combined production target of 31,470 tonnes per day. Nayara Energy’s Vadinar refinery in Gujarat has been given a target of 4,480 tonnes per day, while upstream producers and gas processors, including ONGC and GAIL, have a combined target of 6,460 tonnes per day.
The order also requires companies to maintain adequate infrastructure for LPG storage, transportation and evacuation. Companies have been asked to look into practical and cost-effective methods to increase LPG production, such as changing naphtha to LPG and improving fluid catalytic cracking units.
The government can direct companies to raise LPG production for specified periods whenever necessary to ensure adequate domestic availability, equitable distribution and fair prices.
The production schedule will be reviewed every six months, with revisions taking into account new facilities and additional capacity created through technological or infrastructure improvements.
News Agency Inputs
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