Govt Sets LPG Production Targets For 21 Companies

The government has set emergency LPG production targets for 21 public- and private-sector refineries and upstream companies to reduce India's dependence on imported LPG. The Ministry of Petroleum and Natural Gas issued an order on August 13, establishing maximum production ceilings for these companies, with a combined potential output of 63,810 tonnes per day.

This move is expected to help India mitigate the impact of future disruptions in global LPG supplies. The largest contribution under the framework is expected from Reliance Industries' older refinery, which has been assigned a maximum production target of 18,000 tonnes per day.

The new policy follows disruptions triggered by the West Asia conflict, when the closure of the Strait of Hormuz exposed India's heavy dependence on imported LPG. In FY26, India consumed 33.2 million tonnes of LPG, producing only 13.1 million tonnes domestically while importing 21.3 million tonnes, leaving more than 64% of demand dependent on overseas supplies.

During the crisis, the government instructed refineries to divert petrochemical feedstock toward LPG production, restricted commercial and industrial LPG sales, encouraged households to use piped natural gas where possible, and increased refill booking intervals. These emergency measures helped raise domestic output to around 55,000 tonnes per day before supply conditions improved.

The latest order creates a standing mechanism that allows the government to direct refiners, oil marketing companies, and upstream producers to increase LPG production for specified quantities and durations whenever domestic supply comes under pressure. Companies have also been instructed to maintain adequate storage, transportation, and evacuation infrastructure while pursuing technically and economically viable upgrades to maximise LPG production.

Suggested improvements include converting naphtha into LPG and upgrading fluid catalytic cracking units. The production schedule will be reviewed every six months to incorporate new refining capacity, upstream projects, and technological improvements, helping build a stronger domestic buffer against future disruptions in global LPG supplies.

The government's move is expected to enhance India's energy security and reduce its reliance on imported LPG. The new framework will help ensure a stable supply of cooking gas to households and industries, even in the event of disruptions in global supplies.

In the long run, the government's efforts to boost domestic LPG production are expected to have a positive impact on the country's economy and energy security. By reducing its dependence on imported LPG, India can mitigate the impact of price volatility and ensure a stable supply of energy to its citizens.

The new policy is a significant step towards achieving the government's goal of reducing India's dependence on imported energy sources. It is expected to have a positive impact on the country's energy security and economy, and will help ensure a stable supply of cooking gas to households and industries.

Overall, the government's move to set emergency LPG production targets for 21 companies is a significant step towards enhancing India's energy security and reducing its reliance on imported LPG. The new framework will help ensure a stable supply of cooking gas to households and industries, even in the event of disruptions in global supplies.

The government's efforts to boost domestic LPG production are expected to have a positive impact on the country's economy and energy security. By reducing its dependence on imported LPG, India can mitigate the impact of price volatility and ensure a stable supply of energy to its citizens.

In conclusion, the government's move to set emergency LPG production targets for 21 companies is a significant step towards achieving the goal of reducing India's dependence on imported energy sources. It is expected to have a positive impact on the country's energy security and economy, and will help ensure a stable supply of cooking gas to households and industries.

What it means for India is that the country will be better equipped to handle future disruptions in global LPG supplies, and will be able to reduce its dependence on imported energy sources. This will have a positive impact on the country's economy and energy security, and will help ensure a stable supply of energy to its citizens.