India Sets LPG Production Targets for Refineries Amid Supply Concerns
The Indian government has established maximum LPG production targets for 21 refineries and upstream companies to bolster domestic supply. This strategic move aims to mitigate reliance on imports, especially after disruptions caused by geopolitical tensions in the Middle East.
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The Indian Petroleum and Natural Gas Ministry has mandated maximum LPG production levels totaling 63,810 tonnes per day for 21 refineries and upstream firms, exceeding double the output of the previous fiscal year. Reliance Industries Ltd's refinery in Jamnagar is tasked with the highest quota of up to 18,000 tonnes daily.
India’s LPG consumption reached 33.2 million tonnes in 2025-26, with over 64% sourced from imports. This dependency raised concerns during the recent Iran conflict, prompting the government to divert petrochemical output to LPG. New measures include facility-wise benchmarks and enhanced infrastructure for storage and transport, with a review of production schedules every six months, ensuring readiness against future supply disruptions.
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