Our Bureau
New Delhi
The government has directed state-run and private oil companies to significantly increase domestic liquefied petroleum gas (LPG) production as disruptions around the Strait of Hormuz continue to threaten India’s cooking-gas supplies. The move is aimed at strengthening domestic availability and reducing the country’s vulnerability to import disruptions.
Under an August 13 government notification, 21 refineries and upstream companies have been assigned maximum LPG production targets, with combined potential output set at 63,810 tonnes a day. The targets will apply when supply constraints emerge, while the government plans to revise the schedule every January and July.
Domestic refiners have already increased LPG production from around 36,000 tonnes per day before the conflict to as much as 54,000 tonnes per day. The latest target would raise potential output further, although it would still cover only about 70% of India’s daily LPG consumption.
Reliance Industries’ domestic-market-focused refining unit has been assigned the largest production target, at 18,000 tonnes a day. State-run companies including Oil and Natural Gas Corporation, Oil India and GAIL have also been asked to contribute to the national output target.
India remains heavily dependent on imported LPG. In 2025-26, the country consumed about 33.2 million tonnes, with roughly 13.1 million tonnes produced domestically and 21.3 million tonnes imported. About 90% of India’s LPG imports traditionally pass through the Strait of Hormuz, making disruptions in the region a major supply risk.
The government has also instructed companies to strengthen LPG storage, evacuation and transportation infrastructure. Refiners have been asked to explore technically and economically feasible ways of maximising output, including alternative uses of feedstocks such as converting naphtha into LPG.