The government has for the first time fixed maximum cooking gas LPG production targets for individual public- and private-sector refineries and upstream companies, according to PTI. The Petroleum and Natural Gas Ministry, in an order issued on August 13, specified maximum LPG production levels for 21 refineries and upstream companies, 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 India's daily consumption. PTI reported the production limits will kick in whenever there is a supply constraint.
Reliance gets largest quota
Reliance Industries Ltd's older refinery would have to produce up to 18,000 tonnes a day of LPG, the largest share among the 21 facilities covered by the order, according to the ministry order reported by PTI. The target framework applies to both public- and private-sector plants. PTI noted the order covers 18 refineries owned and operated by public-sector oil companies among the total.
Supply gap exposed by the West Asia conflict
PTI's report details the scale of India's LPG import dependence that prompted the move. India consumed 33.2 million tonnes of LPG in the 2025-26 fiscal year (about 91,000 tonnes per day). Of this, 13.1 million tonnes a year was produced locally (about 35,900 tonnes a day), while the remaining 21.3 million tonnes per annum (about 58,400 tonnes a day) was imported.
That import dependence of over 64 percent left the country exposed when the start of the Iran war effectively shut the Strait of Hormuz, the narrow sealane through which India got 90 percent of its imports from nations like Saudi Arabia, PTI reported.
Emergency measures during the crisis
With supplies impacted, the government in March ordered refineries to divert streams used for petrochemicals production to maximise LPG output, according to PTI. It also initially stopped sales to industrial and commercial users and thereafter gradually scaled them up. For domestic households, periodicity of booking a refill was increased, and households were encouraged to shift to piped natural gas, whose supplies were not so severely impacted due to the war.
Domestic production was ramped up to about 55,000 tonnes a day at the height of the crisis, but the emergency orders asking refiners to maximise output were gradually withdrawn after supplies eased from mid-June, PTI reported.
A standing framework beyond the emergency
The new order goes further than the emergency one issued during the West Asia crisis, PTI reported. It creates facility-wise production benchmarks and requires refiners and upstream companies to maintain adequate infrastructure for LPG storage, evacuation and transportation. Companies must also pursue technically and economically feasible upgrades to maximise output.
The government has empowered itself to order refiners, oil marketing companies and upstream producers to ramp up LPG production for specified quantities and periods whenever it considers such action necessary to 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.
The order also requires refiners to consider measures such as converting naphtha into LPG and upgrading fluid catalytic cracking units where technically and economically viable, underscoring the government's push to extract more LPG from existing refining infrastructure, according to PTI.
The new production framework is aimed at ensuring that a future disruption to overseas LPG supplies does not translate into the shortages and rationing seen during the recent crisis. The government had introduced several emergency measures during the West Asia crisis, including prioritising household LPG supplies and restricting supplies to some commercial and industrial users as imports were disrupted.
Key figures at a glance
| Indicator | Value |
|---|---|
| Combined LPG production potential (21 refineries/upstream companies) | 63,810 tonnes/day |
| Reliance Industries older refinery target | up to 18,000 tonnes/day |
| Domestic LPG output, FY26 | 13.1 million tonnes/year (~35,900 tonnes/day) |
| LPG imports, FY26 | 21.3 million tonnes/year (~58,400 tonnes/day) |
| LPG consumption, FY26 | 33.2 million tonnes/year (~91,000 tonnes/day) |
| Peak production during West Asia crisis | ~55,000 tonnes/day |
Sources:
