Government Fixes LPG Production Targets for 21 Companies, Reliance Gets Highest Quota

The Government has fixed maximum LPG production targets for 21 refineries and upstream companies, as per a PTI news report. The targets will apply when there is a shortage or disruption in LPG supplies. 

The Petroleum and Natural Gas Ministry issued the order on August 13, 2026. The companies together have been assigned production capacity of 63,810 tonnes a day, equal to about 70% of India's daily LPG consumption. 

Reliance Gets 18,000 Tonnes a Day 

Reliance Industries' domestic-tariff-area refinery at Jamnagar has received the highest target of 18,000 tonnes a day. The refinery has an annual capacity of 33 million tonnes. 

The company's separate 35.2 million-tonne-a-year export-oriented refinery at Jamnagar has not been given a production target under the order. 

Nayara Energy's Vadinar refinery has been assigned a target of 4,480 tonnes a day. 18 refineries operated by public-sector oil companies have a combined target of 31,470 tonnes a day. 

ONGC and GAIL, along with other upstream producers and processors, have been given a combined target of 6,460 tonnes a day. 

India Relies Heavily on LPG Imports 

India consumed 33.2 million tonnes of LPG in 2025-26, or around 91,000 tonnes a day. Domestic production stood at 13.1 million tonnes, while imports were 21.3 million tonnes. 

Imports therefore made up more than 64% of total LPG supplies. Around 90% of India's LPG imports move through the Strait of Hormuz from countries including Saudi Arabia. 

The dependence came under pressure during the West Asia conflict when the waterway was effectively shut. The government had then asked refiners to divert streams used for petrochemical production towards LPG. 

Domestic production rose to about 55,000 tonnes a day during the disruption. These emergency measures were gradually withdrawn after supplies improved from mid-June. 

Companies Asked to Raise Output 

The order also requires refiners and upstream companies to maintain facilities for LPG storage, evacuation, and transportation. They have been asked to take technically and economically feasible steps to increase production. 

These measures include converting naphtha into LPG and upgrading fluid catalytic cracking units where possible. 

Targets to Be Reviewed 

The government can direct refiners, oil marketing companies, and upstream producers to increase LPG production for specified quantities and periods if supplies come under pressure. 

The targets will be reviewed every six months, on January 1 and July 1, taking into account new capacity and additional output from upgrades. 

Read More: Foreign Assets Disclosure Scheme Opens from August 16, 2026 for Small Taxpayers! 

Conclusion  

The new framework sets maximum LPG production levels for 21 companies during supply constraints. Reliance Industries has received the largest target. 

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