Govt sets 63,810 tonnes/day LPG production cap till Dec 2026

The Central Government has imposed a maximum daily production limit of 63,810 tonnes of liquefied petroleum gas (LPG) on all refiners, including joint ventures and private firms, until December 2026. This is the first time the government has set a bi-annual LPG output ceiling. The order follows disruption in supplies to India after the Strait of Hormuz closure amid the West Asia conflict that began on February 28, 2026, The Hindu Business Line reports.

The Ministry of Petroleum & Natural Gas issued the notification, effective August 13, amending the Petroleum Products Order of 1999. It empowers the government to direct refiners to ramp up LPG production to ensure adequate and fair supply. Reliance Industries has the highest allocation at 18,000 tonnes per day (TPD). State-run firms together have a cap of 31,470 TPD, while the private sector must produce a maximum of 25,880 TPD and upstream companies 6,460 TPD.

Refiners must develop infrastructure for storage, evacuation and transport matching the specified quantities. The Centre for High Technology will monitor compliance. Contravention is punishable under the Essential Commodities Act, 1955. The production schedule will be updated every January 1 and July 1.