Government sets LPG production targets for refiners after Hormuz crisis

The government has for the first time fixed maximum LPG production targets for 21 individual refineries and upstream companies, aiming to build a domestic supply buffer after the West Asia conflict exposed India's vulnerability to import disruptions. The Petroleum Ministry order, issued on August 13, sets combined potential output at 63,810 tonnes a day, more than double last fiscal year's domestic production and about 70 per cent of daily consumption. Reliance Industries Ltd's older refinery must produce up to 18,000 tonnes a day, the largest share.

India consumed 33.2 million tonnes of LPG in 2025-26, with domestic output at 13.1 million tonnes and imports at 21.3 million tonnes. The over 64 per cent import dependence left the country exposed when the Iran war blocked the Strait of Hormuz, through which India got 90 per cent of its imports. During the crisis, the government ordered refiners to maximise output, stopped industrial sales, and increased refill periods for households. The new order sets permanent benchmarks and requires companies to maintain storage and evacuation infrastructure.