How Modi government plans to protect India from LPG shortage
What's the story
In a major policy shift, the Indian government has set refinery- and company-specific maximum LPG production levels for the first time. The move is aimed at creating a framework that can quickly ramp up domestic cooking gas supplies during future disruptions. The decision comes in the wake of the West Asia conflict, which highlighted India's dependence on imported LPG and forced emergency measures to protect household supplies.
Production strategy
Production levels set for 21 refineries and upstream companies
Under an order by the Ministry of Petroleum and Natural Gas, a total of 21 refineries and upstream companies have been assigned a combined maximum production potential of 63,810 tons of LPG per day.
This is about 70% of India's current daily LPG consumption and significantly higher than the country's domestic production in FY26.
The specified levels aren't meant as normal daily production requirements but provide a facility-wise framework for increasing output when domestic supplies come under pressure.
Refinery allocation
Reliance Industries assigned highest production level
Reliance Industries' domestic-tariff-area refinery at Jamnagar in Gujarat has been assigned the largest individual production level of up to 18,000 tons a day.
The refinery has an annual crude-processing capacity of about 33 million tons and supplies products to the domestic market.
Public-sector oil companies' 18 refineries have been collectively assigned production of up to 31,470 tons a day.
Production enhancement
Companies directed to explore ways to enhance output
The government has also asked companies to explore ways to produce more LPG with the existing refining infrastructure.
The order directs firms to adopt technically and economically feasible methods such as naphtha conversion into LPG and fluid catalytic cracking unit revamps.
These investments could enable refineries to boost LPG production beyond the levels currently deemed achievable.
Companies making such upgrades will have to inform the Centre for High Technology or another authorized agency.