India sets LPG output targets for refiners, producers to tackle supply disruptions

India has established refinery- and company-specific Liquefied Petroleum Gas (LPG) production targets for the first time, aiming to bolster the nation's energy security. This move seeks to lessen the impact of disruptions in imported cooking gas supplies.

The Petroleum and Natural Gas Ministry has outlined a framework compelling 21 refineries and upstream companies to ramp up LPG production when supply constraints emerge. The combined production potential under this new system is set at 63,810 tonnes per day. This figure represents approximately 70 percent of India's daily LPG consumption and significantly exceeds the country's usual domestic output.

The government's decision follows recent West Asia conflicts that highlighted India's vulnerability to imported LPG. The nation consumes about 33.2 million tonnes of LPG annually, with over 64 percent sourced through imports, primarily passing through the Strait of Hormuz. During a previous crisis related to Iran, shipment disruptions forced emergency measures, including maximizing domestic production by diverting petrochemical feedstock and curtailing supplies to industrial users.

This new order creates a permanent mechanism that can be activated by the government to ensure adequate LPG availability and fair distribution. Public sector refineries are assigned a combined daily LPG production target of 31,470 tonnes. This permanent framework replaces the ad-hoc emergency directives previously issued during supply crunches.