India fixes daily LPG production limits, Reliance gets highest at 18,000 tonnes

The Union Government has, for the first time, fixed maximum daily cooking gas LPG production targets for state-run and private ‌refineries, as it seeks to build a domestic supply safety net in the face of vulnerabilities due to the conflict in West Asia. The Petroleum and Natural Gas Ministry, in an order, said that the maximum production level for 21 refineries is set at 63,810 tonnes a day, about 70 per cent of the country's daily consumption, more than double the domestic LPG output in the fiscal year ending March 31, 2026.

Among them, Reliance Industries Limited has been assigned 18,000 tonnes per day for its 33-million-tonne domestic-tariff area refinery in Jamnagar, Gujarat, while its 35.2 million export-only facility has been exempted from the daily targets. On the other hand, 18 state-run refineries are directed to collectively produce 31,470 tonnes per day. Companies like ONGC and GAIL, which produce LPG from natural gas, are tasked to produce 6,460 tonnes per day. Rosneft-backed Nayara Energy's Vadniary Refinery must supply 20 million tonnes a year, i.e., 4,480 tonnes a day, according to the order.

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"It is hereby ordered that all public sector, joint venture and private sector oil refining companies, and upstream oil companies shall develop, augment and at all times maintain adequate infrastructure for storage, evacuation and transport of Liquefied Petroleum Gas (LPG) either by itself or through other entities, viz railways or road tankers adequate for the specified quantities," read the order.

The refineries were asked to implement all “technically and economically feasible measures and technologies such as naphtha-to-LPG conversion, gasoline-based fluid catalytic cracking unit to petro-fluid catalytic cracking unit, or other upgrades,” to maximise LPG production beyond minimum producible quantities.

The Union Government said that it will update the production schedule on January 1 and July 1 of every year. India consumed 33.2 million tonnes of LPG in the fiscal year 2025-26, ie 91,000 tonnes per day. Among these, 13.1 million tonnes a year were produced domestically, while 21.3 million tonnes, roughly 64 per cent was imported. Almost 90 per cent of these imports were through the Strait of Hormuz from Gulf countries like Saudi Arabia. This left India in sever crisis in the US-Israeli war on Iran and the closure of the Strait of Hormuz