Domestic LPG Production Boost: Reliance Tasked with Major Share

Amid the crisis in West Asia, the Union Government has formulated a crucial strategy to boost domestic Liquefied Petroleum Gas (LPG) production. For the first time, the government has set specific LPG production targets for 21 public and private sector oil refinery companies and oil/gas producers. Moving forward, these entities will collectively have to produce 63,180 tonnes per day—more than double their previous daily output.

This target is more than double the LPG produced domestically in the fiscal year 2026 and accounts for nearly 70% of the nation’s total daily consumption. The government specified in its order that these production mandates will take effect whenever supply shortages occur. The largest share of this planned target has been allocated to Reliance Industries’ older refinery, which will be required to produce up to 18,000 tonnes of LPG per day.

In the 2025–2026 fiscal year, India consumed 33.2 million tonnes of LPG, averaging about 91,000 tonnes per day. Out of this, 13.1 million tonnes annually—or roughly 35,900 tonnes daily—was produced locally. The remaining 21.3 million tonnes, translated to approximately 58,400 tonnes per day, was imported. India relies on the Strait of Hormuz to import nearly 90% of its LPG from countries like Saudi Arabia.

The production schedule will be reviewed once every six months. The government also highlighted measures such as converting naphtha into LPG where technically and economically feasible, alongside upgrading Fluid Catalytic Cracking Units (FCCUs).