Centre Sets LPG Production Targets as West Asia Conflict Raises Fuel Supply Concerns

The Indian government has taken a major step to strengthen domestic LPG supplies after disruptions in international energy markets exposed the country's dependence on imported cooking gas.

Under a government order issued on August 13, maximum daily LPG production targets have been fixed for individual public- and private-sector refineries and upstream companies. The combined production potential under the new framework is 63,810 tonnes of LPG per day. The targets are designed to provide a domestic supply buffer during periods of disruption. The production limits will come into effect when there is a supply constraint, giving the government a mechanism to increase domestic availability when imports face difficulties. The move comes against the backdrop of continuing disruption to energy supplies linked to the West Asia conflict. India relies significantly on imports to meet its LPG requirement, making international shipping routes and overseas availability important for the country's cooking-fuel supply.

Data cited in reports based on the government order shows that India consumed around 33.2 million tonnes of LPG during the 2025-26 financial year, equivalent to roughly 91,000 tonnes a day. Domestic production during that period was about 13.1 million tonnes a year, or around 35,900 tonnes a day. Imports accounted for approximately 21.3 million tonnes, or about 58,400 tonnes a day. The numbers highlight the scale of India's import dependence. Domestic production covered only a portion of total consumption, while a much larger volume came from international supplies. Among the companies covered by the new production framework, Reliance Industries has received the largest individual target. Its older refinery has been assigned a maximum production level of up to 18,000 tonnes of LPG per day, according to the government order. The government's approach is aimed at creating additional resilience rather than depending entirely on overseas supplies during a crisis. The development also follows earlier government measures to protect LPG availability after the Middle East conflict disrupted supply routes. India had previously directed refiners to maximise LPG production during the supply crisis. For ordinary households, LPG availability is particularly important because cooking gas remains one of the country's most widely used household fuels. Government data shows that India had around 331.4 million active domestic LPG connections as of July 1, 2026, underlining the scale of the system that needs to be supplied.

The new framework therefore represents more than a refinery-level production decision. It is part of a broader effort to build a stronger domestic energy buffer and reduce the vulnerability of essential fuel supplies to geopolitical shocks.

The government has also been working to diversify LPG sourcing. Reuters reported in July that India had accelerated purchases from the United States and other suppliers as Middle East disruptions affected imports.

The latest production targets give India another layer of protection: instead of relying only on additional imports during a crisis, domestic refiners can be called upon to increase LPG output when supply conditions require it.