The federal government has for the primary time fastened most cooking gasoline LPG manufacturing targets for particular person public- and private-sector refineries and upstream corporations, because it seeks to construct a home provide buffer after the West Asia battle uncovered the nation’s vulnerability to disruptions in imported cooking gasoline.
The Petroleum and Pure Fuel Ministry, in an order issued on August 13, has specified most LPG manufacturing ranges for 21 refineries and upstream corporations, with mixed manufacturing potential set at 63,810 tonnes a day — greater than double the home LPG output within the fiscal 12 months ended March 31, 2026 and about 70% of the nation’s day by day consumption.
The manufacturing limits will kick in at any time when there’s a provide constraint.
The lion’s share of the deliberate output has been set from Reliance Industries Ltd’s older refinery, which must produce as much as 18,000 tonnes a day of LPG, in line with the order.
India consumed 33.2 million tonnes of LPG within the 2025-26 fiscal 12 months (about 91,000 tonnes per day). Of this, 13.1 million tonnes a 12 months was produced domestically (about 35,900 tonnes per day), whereas the remaining 21.3 million tonnes each year (about 58,400 tonnes a day) was imported.
This excessive import dependence of over 64% left the nation uncovered when the beginning of the Iran conflict successfully shut the Strait of Hormuz, the slim sea lane by which India received 90% of its imports from nations like Saudi Arabia.
With provides impacted, the federal government in March ordered refineries to divert streams used for petrochemical manufacturing to maximise LPG output.
It additionally initially stopped gross sales to industrial and business customers and thereafter steadily scaled it up. For home households, the frequency of reserving a refill was elevated, they usually have been inspired to shift to piped pure gasoline, whose provides weren’t so severely impacted as a result of conflict.
Home manufacturing was ramped as much as about 55,000 tonnes a day on the top of the disaster. Nonetheless, the emergency orders asking refiners to maximise output have been steadily withdrawn after provides eased from mid-June.
The brand new order goes additional than the emergency one issued through the West Asia disaster by establishing facility-specific manufacturing benchmarks and requiring refiners and upstream corporations to take care of ample infrastructure for LPG storage, evacuation, and transportation. Corporations should additionally pursue technically and economically possible upgrades to maximise output.
The federal government has empowered itself to order refiners, oil advertising corporations and upstream producers to ramp up LPG manufacturing for specified portions and intervals at any time when it considers such motion essential to make sure ample home availability, equitable distribution and provide at truthful costs.
The manufacturing schedule will probably be reviewed each six months, permitting the federal government so as to add output from new refineries and upstream fields and account for extra capability created by expertise and infrastructure upgrades.
The order additionally requires refiners to contemplate measures corresponding to changing naphtha into LPG and upgrading fluid catalytic cracking models the place technically and economically viable, underscoring the federal government’s push to extract extra LPG from current refining infrastructure.
The federal government had launched a number of emergency measures through the West Asia disaster, together with prioritising family LPG provides and proscribing provides to some business and industrial customers as imports have been disrupted.
The brand new manufacturing framework is geared toward making certain {that a} future disruption to abroad LPG provides doesn’t translate into the shortages and rationing seen through the latest disaster.
Taking classes from the disaster, the federal government has now put the nation’s refineries and upstream producers underneath a standing framework to take care of and, when essential, improve LPG output.
Eighteen refineries owned and operated by public sector oil corporations have been ordered to supply a complete of 31,470 tonnes a day.
Within the non-public sector, Reliance’s 33 million tonnes-a-year home tariff space (DTA) refinery at Jamnagar in Gujarat, merchandise from that are bought domestically, has been ordered to supply 18,000 tonnes. No goal has been set for Reliance’s 35.2 million tonnes a 12 months only-for-exports refinery on the similar web site.
Russia’s Rosneft-backed Nayara Vitality’s 20 million tonnes-a-year Vadinar refinery has been requested to supply 4,480 tonnes a day, in line with the order.
Upstream gasoline producers and processors like ONGC and GAIL, which make LPG from pure gasoline, have been given a goal of 6,460 tonnes a day.
“It’s hereby ordered that each one public sector, three way partnership and personal sector oil refining corporations, and upstream oil corporations shall develop, increase and always keep ample infrastructure for storage, evacuation and transport of Liquefied Petroleum Fuel (LPG) both by itself or by different entities, viz railways or highway tankers ample for the desired portions,” the order mentioned.
They have been additionally ordered to “implement all technically and economically possible measures and applied sciences corresponding to naphtha-to-LPG conversion, gasoline-based fluid catalytic cracking unit to petro-fluid catalytic cracking unit, or different upgrades, to maximise LPG manufacturing past present minimal producible portions as specified within the Schedule, with intimation to Centre for Excessive Know-how or some other authorised company, at any time when such an improve is undertaken.” The ministry additional mentioned “if central authorities is of the opinion that it’s essential in public curiosity to make sure ample availability, equitable distribution and availability at truthful costs of home LPG, it could by itself or by Centre for Excessive Know-how or some other authorised company, by order in writing, challenge route to grease refining corporations, oil advertising corporations and upstream oil corporations to ramp up the LPG manufacturing ranges for such amount and interval specified therein, together with compliance with any restrictions on various makes use of of enter streams required to supply the LPG.” Every time instructions are issued, the businesses should ramp-up LPG manufacturing ranges throughout the stipulated timeframe.
The central authorities, the order mentioned, shall replace the manufacturing schedule on January 1 and July 1 of yearly, together with updates to LPG manufacturing from new refineries and upstream oil corporations or extra LPG portions from current refineries and upstream corporations as a result of modifications to related infrastructure and manufacturing expertise, evacuation, provide, transport or distribution of LPG.
Revealed – August 16, 2026 11:14 am IST
