Government sets LPG production targets for 21 refineries

The government has for the first time fixed maximum LPG production targets for 21 public and private refineries and upstream companies to build a domestic buffer after the West Asia conflict exposed India's vulnerability to import disruptions. The August 13 order by the Petroleum Ministry sets combined production potential at 63,810 tonnes a day, more than double last fiscal year's domestic output and about 70 per cent of daily consumption.

India imported over 64 per cent of its 33.2 million tonne LPG consumption in 2025-26. When the Iran war shut the Strait of Hormuz, through which 90 per cent of imports came, the government had to ration supplies and order emergency production. The largest quota goes to Reliance Industries' domestic refinery at Jamnagar, which must produce up to 18,000 tonnes a day. Public sector refineries have a collective target of 31,470 tonnes daily, while Nayara Energy's Vadinar unit must supply 4,480 tonnes.

The order requires companies to maintain storage and evacuation infrastructure and pursue upgrades like converting naphtha to LPG. The government can mandate increased production whenever needed. The production schedule will be reviewed every six months.