India fixes LPG production targets for refiners
Analysis based on 40 articles · First reported Jul 30, 2026 · Last updated Aug 17, 2026
The directive creates a permanent domestic supply buffer, reducing India's vulnerability to future import disruptions and potentially stabilizing LPG prices. For refiners, the quotas add compliance obligations and may influence operational decisions, while the increased domestic production capacity could reduce import dependence over time.
Following the West Asia conflict that disrupted LPG imports through the Strait of Hormuz, the Indian government, through the India — Ministry of Petroleum and Natural Gas, issued an order on August 13, 2026, setting maximum LPG production targets for 21 refineries and upstream companies. The combined production potential is set at 63,810 tonnes per day, more than double the domestic output of the previous fiscal year and about 70% of daily consumption. The targets will activate during supply constraints. Reliance Industries received the largest single quota of 18,000 tonnes per day from its Jamnagar DTA refinery, while 18 public-sector refineries were assigned a combined 31,470 tonnes per day, and Nayara Energy's Vadinar refinery was allocated 4,480 tonnes per day. Upstream producers Oil and Natural Gas Corporation and GAIL (India) were given a combined target of 6,460 tonnes per day. The order also requires companies to maintain storage and evacuation infrastructure and to pursue upgrades such as naphtha-to-LPG conversion. The production schedule will be reviewed every six months. This framework aims to prevent the shortages and rationing experienced during the crisis, when domestic production was ramped to about 55,000 tonnes per day at its peak.
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