Government sets LPG production targets for refiners; Reliance gets largest quota
The Indian government has established mandatory LPG production targets for refineries to reduce reliance on imports following supply disruptions caused by the West Asia conflict. Reliance Industries has been assigned the largest quota to help build a domestic supply buffer.
Why it matters
This policy shift reflects a strategic move toward energy security and economic resilience in response to geopolitical instability.
The government has for the first time fixed maximum cooking gas LPG production targets for individual public- and private-sector refineries and upstream companies, as it seeks to build a domestic supply buffer after the West Asia conflict exposed the country's vulnerability to disruptions in imported cooking gas.
The Petroleum and Natural Gas Ministry, in an order issued on August 13, has specified maximum LPG production levels for 21 refineries and upstream companies, with combined production potential set at 63,810 tonnes a day -- more than double the domestic LPG output in the fiscal year ended March 31, 2026 and about 70% of the country's daily consumption.
The production limits will kick in whenever there is a supply constraint.
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