India has directed its state-owned and private refiners to significantly increase liquefied petroleum gas (LPG) production, aiming to reach 63,810 tonnes per day. This ambitious target represents more than double the domestic LPG output from the fiscal year ending March 31, 2026, which was approximately 35,900 tonnes per day, and would cover about 70% of the country's daily consumption. The government's move comes in response to disruptions in traditional supply routes, particularly through the Strait of Hormuz, caused by the US-Iran war, which historically accounted for about 90% of India's LPG imports.
Reliance Industries Ltd.'s domestic-market-focused unit has been assigned the largest individual production target, at 18,000 tonnes per day. Other significant contributors include 18 public sector oil companies, which are mandated to produce a combined 31,470 tonnes per day, and upstream gas producers like ONGC and GAIL, with a target of 6,460 tonnes per day. Nayara Energy's Vadinar refinery is expected to produce 4,480 tonnes per day. These targets are designed to create a domestic supply buffer and reduce the country's reliance on imports, which previously stood at over 64% of total consumption.
The initiative also requires refiners to expand infrastructure for LPG storage, evacuation, and transportation, and to implement technically and economically feasible measures to maximize output, such as converting naphtha to LPG or upgrading fluid catalytic cracking units. The government has stated that these production limits will be activated during supply constraints and will be reviewed every six months. This strategic shift aims to insulate India from future geopolitical disruptions, which had previously led to emergency measures like prioritizing household supplies and restricting sales to industrial and commercial users.
