Govt caps LPG production at 63,810 tonnes per day till Dec 2026

The Central Government has set a maximum daily LPG production limit of 63,810 tonnes for all refiners, including joint ventures and private entities, till December 2026, according to the Hindu Business Line. The Ministry of Petroleum and Natural Gas issued the notification effective August 13, amending the Petroleum Products Order of 1999. This is the first time the government has fixed a bi-annual LPG production cap, following supply disruptions after the Strait of Hormuz closure due to the West Asia conflict that began on February 28, 2026.

Reliance Industries has been allocated the highest quota of 18,000 tonnes per day, followed by BPCL Kochi refinery at 4,800 TPD, Mangalore Refinery at 4,600 TPD, Nayara Energy at 4,480 TPD, and HPCL Mittal Energy at 3,600 TPD. PSU refiners cumulatively must produce a maximum of 31,470 TPD, while private sector firms have a cap of 25,880 TPD and upstream companies 6,460 TPD. The order mandates refiners to develop adequate storage and evacuation infrastructure and adopt technologies like naphtha-to-LPG conversion to maximise output.

Separately, the Economic Times reports that Indian Oil Corp has finalised a deal with Algeria's Sonatrach to import LPG in 2027, lifting one very large gas carrier of 45,000-55,000 metric tonnes every month. India is diversifying LPG sources away from the Middle East after the Strait of Hormuz blockade disrupted supplies. The country has also increased intake of US LPG, aiming to buy up to a quarter of its LPG imports from the United States in 2027. Three state retailers are expected to float a joint tender for US LPG imports.