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Government Fixes LPG Production Targets for Refiners, Reliance Gets Largest Share

The order sets facility-specific benchmarks and seeks to build a domestic supply buffer after the West Asia crisis exposed India’s import dependence.

  • On Thursday, The Petroleum and Natural Gas Ministry specified maximum LPG production levels for 21 refineries and upstream companies, setting combined potential at 63,810 tonnes daily—more than double FY26 output and about 70% of India's daily consumption.
  • The West Asia crisis exposed India's vulnerability when the Iran war effectively shut the Strait of Hormuz, the shipping lane through which India received 90% of its LPG imports from nations like Saudi Arabia, forcing emergency rationing.
  • Eighteen public sector refineries received orders to produce a combined 31,470 tonnes daily, while Reliance Industries' Jamnagar facility must produce 18,000 tonnes and upstream producers ONGC and GAIL face a combined target of 6,460 tonnes.
  • Companies must now maintain adequate infrastructure for LPG storage and transport via rail and road tankers, while refiners are mandated to implement technically feasible upgrades such as naphtha-to-LPG conversion to maximize output beyond current minimum levels.
  • The government will review production schedules every six months, allowing for updates from new refineries and technology upgrades, establishing a standing framework to prevent future shortages and maintain a domestic LPG supply buffer.
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India is striving for a substantial increase in the country's production of liquefied petroleum gas (LPG). Imports were disrupted by the blockade of the Strait of Hormuz, leaving the country facing a major shortage.

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The Economic Times broke the news in Mumbai, India on Sunday, August 16, 2026.
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