India Mandates Daily LPG Production Targets for 21 Refineries With Reliance Assigned Largest Share Amid Supply Risks

The Ministry of Petroleum and Natural Gas has mandated a daily LPG production target of 63,810 tonnes across 21 refiners and upstream energy firms, assigning the largest share to Reliance Industries.

In a decisive policy move aimed at safeguarding energy security against global supply chain disruptions, the Indian government has established maximum Liquefied Petroleum Gas (LPG) production targets for oil refiners and upstream producers. According to an order issued by the Ministry of Petroleum and Natural Gas on 13 August, 21 refinery units across the country must comply with mandatory daily production limits during emergency shortages. This regulatory framework comes directly in response to recent geopolitical friction in West Asia that severely hampered liquefied petroleum gas imports. By establishing clear domestic production benchmarks, the government aims to prevent fuel shortages and avoid mandatory rationing for domestic households during future international crises.

Daily Capacity Benchmark Set at 63,810 Tonnes
Under the newly outlined directive, the 21 designated refiners and upstream entities are required to achieve a collective daily production output of 63,810 tonnes of LPG whenever activation orders are triggered. This target represents more than double the average domestic LPG production recorded during the fiscal year that ended on 31 March 2026. Furthermore, this capacity is calculated to meet roughly 70 percent of India's total daily domestic consumption requirement. Officials emphasized that these elevated targets are designed as contingency mandates, coming into effect specifically when international import pipelines suffer material supply contractions.

West Asia Vulnerability and Heavy Import Reliance
India remains heavily dependent on foreign energy sources to fulfill its domestic cooking gas requirements. During fiscal year 2025-26, national consumption reached approximately 3.32 crore tonnes of LPG, while local refinery output accounted for only about 1.31 crore tonnes. Consequently, India had to import nearly 2.13 crore tonnes of LPG, meaning that over 64 percent of the nation's total supply was sourced abroad. Recent escalation in West Asian conflict disrupted vessel movement through the Strait of Hormuz, a critical maritime bottleneck for energy transit. During that disruption, energy authorities were forced to institute emergency operational adjustments, including reallocating refinery processing streams, curtailing deliveries to commercial and industrial buyers, and extending the mandatory waiting interval between household cylinder refill orders.

Specific Targets for Reliance, Nayara, and State Refiners
The ministry's allocation plan divides responsibilities between private refiners and state-owned entities based on their processing capabilities. Reliance Industries' domestic market-focused refinery at Jamnagar has been assigned the largest individual share, requiring it to produce up to 18,000 tonnes of LPG daily during deficit events. Rosneft-backed Nayara Energy's refinery located in Vadinar has been allotted a daily target of 4,480 tonnes. Meanwhile, 18 public sector oil refineries will collectively absorb a quota of 31,470 tonnes per day. Notably, Reliance's second refinery in Jamnagar, which operates exclusively for foreign export markets, has been granted a complete exemption from these domestic supply quotas.

Infrastructure Mandates and Bi-Annual Policy Reviews
To support these higher operational loads, energy companies have been instructed to optimize their processing setups and logistics networks. Refineries must maintain adequate infrastructure for LPG storage, evacuation, and transportation while adopting technically and economically viable output methods. These measures include converting naphtha streams into LPG when required and upgrading Fluid Catalytic Cracking (FCC) units to maximize yield. The ministry announced that all production targets will undergo formal review every 6 months to incorporate capacity expansions from new refining facilities, emerging oil and gas blocks, and technological modernizations. This structured approach converts temporary crisis responses into a permanent institutional strategy, protecting domestic consumers from supply shocks, artificial shortages, and emergency rationing.

What this means for you
Across India: Domestic households will experience significantly higher protection against cooking gas shortages and booking delays during international geopolitical supply disruptions.

For Commercial Users: Industrial and commercial LPG supplies may face prioritized rationing during peak emergency periods to maintain domestic household availability.

Questions & Answers

1. What is the total daily LPG production target set by the government?
The government has mandated a total daily LPG production target of 63,810 tonnes across 21 refiners and upstream producers.

2. What is the specific target assigned to Reliance Industries?
Reliance Industries' domestic market refinery at Jamnagar has been assigned a target of 18,000 tonnes of LPG per day during crisis situations.

3. How much of its LPG consumption does India import?
In FY 2025-26, India imported over 64 percent of its total LPG consumption, totaling about 2.13 crore tonnes.

4. Will these production targets apply continuously every day?
No, these targets are contingency mandates that take effect specifically during supply deficits or international import disruptions.

5. How frequently will the government review these production targets?
The government will review the LPG production targets every 6 months to integrate new capacity and technology upgrades.

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