Government Sets Refinery-Specific Production Targets; Reliance Receives Largest Quota
India has established production targets for individual refineries and upstream companies for the first time, aiming to strengthen its domestic LPG supply amid disruptions in imports from the Middle East. The petroleum and natural gas ministry issued an order earlier this week, setting maximum LPG production levels for 21 refineries and upstream companies. Collectively, these entities can produce up to 63,810 tonnes of LPG daily, which exceeds India’s projected domestic LPG production for 2025-26 and covers about 70% of the country’s daily consumption.
Reliance Gets Highest Target
Reliance Industries has been assigned the highest production target, set at 18,000 tonnes of LPG per day from its older refinery. Public-sector oil companies are collectively tasked with producing 31,470 tonnes daily across 18 refineries. Reliance’s Jamnagar refinery, which operates within the domestic-tariff area, is the only facility with a specified target, while its export-oriented refinery at the same site has no production target. Nayara Energy’s refinery in Vadinar has been given a target of 4,480 tonnes per day. Additionally, gas producers like ONGC and GAIL have a combined target of 6,460 tonnes daily.
India’s Heavy Reliance on LPG Imports
In 2025-26, India consumed 33.2 million tonnes of LPG, averaging about 91,000 tonnes daily. Domestic production reached 13.1 million tonnes, or approximately 35,900 tonnes per day, while imports accounted for 21.3 million tonnes, translating to around 58,400 tonnes daily. This reliance on imports meant that over 64% of India’s LPG needs were met through foreign sources. The situation became critical when the Iran war disrupted the Strait of Hormuz, a key route for 90% of India’s LPG imports from countries like Saudi Arabia.
Emergency Measures Raised Domestic Production
In response to the import disruptions, the government directed refineries in March to redirect some production streams from petrochemicals to LPG. Initially, sales to industrial and commercial users were halted, and the time between LPG refill bookings for households was extended. Consumers were encouraged to switch to piped natural gas, which faced fewer supply issues. During the crisis, domestic LPG production peaked at around 55,000 tonnes daily. The emergency measures were gradually lifted after supply conditions improved in mid-June, leading to the establishment of facility-specific production targets.
Refineries Told to Improve LPG Storage and Transport
The new regulations mandate that refineries and upstream companies enhance their infrastructure for storing and transporting LPG. They are required to implement feasible measures to boost production. The order specifies that all oil refining and upstream companies must develop and maintain adequate infrastructure for LPG storage and transport. Companies are also instructed to adopt technologies that can maximize LPG production, including converting naphtha into LPG and upgrading existing facilities.
Targets to Be Reviewed Every Six Months
The government plans to review and update the production targets every January 1 and July 1. These updates may include new refineries and upstream companies as well as increased production from existing facilities following improvements in infrastructure and technology. This framework follows emergency measures taken during the Middle East crisis, which prioritized household LPG supplies and restricted some commercial sales.
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