In A First, Centre Doubles Domestic LPG Production Target For Refineries; Eyes No Future Supply Disruptions

The government has for the first time set maximum production targets for individual refinery units and oil and gas companies to boost domestic liquefied petroleum gas (LPG) production after supplies of imported cooking gas were affected during the West Asia conflict.

According to the August 13 order of the Ministry of Petroleum and Natural Gas, a total LPG production capacity of 63,810 tonnes per day has been fixed for 21 refineries and upstream companies.

The latest limit is more than double the domestic LPG production for the fiscal year ending March 31, 2026. It also represents 70 per cent of the country's daily consumption. These targets will apply in the event of a supply shortfall.

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Why the enhanced quota matters?

India consumed approximately 33.2 million tonnes of LPG in the 2025-26 fiscal year, while domestic production was approximately 13.1 million tonnes.

Approximately 21.3 million tons of LPG had to be imported. This means the country imports more than 64 per cent of its LPG needs. Under the new order, Reliance Industries' Jamnagar refinery, which operates for the domestic market, has been given the largest target. It will have to produce 18,000 tons of LPG per day if needed.

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Meanwhile, the Vadinar refinery of Russia's Rosneft-backed Nayara Energy has been targeted at 4,480 tonnes per day. The combined production target for 18 public sector refineries is 31,470 tonnes per day.

No target has been set for Reliance's second export-only refinery in Jamnagar. The government will review production targets every six months. Additional capacity generated by new refineries, new oil and gas fields, and technological upgrades will also be included.

(With PTI Inputs)