The Centre will update the production schedule on January 1st and July 1st of every year including updates to LPG production from new refineries and upstream oil companies or additional LPG quantities.
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ANI
The Central Government has set a maximum daily production limit of 63,810 tonnes per day (TPD) of liquefied petroleum gas (LPG) for all the refiners in the country, including joint ventures and private sector entities, till December 2026.
It is for the first time that the government has fixed a bi-annual maximum LPG production limit for refiners, which comes close on the heels of the disruption in supplies to India after closure of the Strait of Hormuz (SoH) following the latest conflict in West Asia, which began on February 28, 2026.
Last week, the Ministry of Petroleum & Natural Gas (MoPNG) through a notification, effective August 13, fixed the maximum daily LPG production limit for all the public sector, joint venture and private sector oil refining companies, and upstream oil firms.
“If the Central Government is of the opinion that it is necessary in public interest to ensure adequate availability, equitable distribution and availability at fair prices of domestic LPG, it may by itself or through Centre for High Technology (CHT) or any other authorised agency… issue direction to oil refining companies, oil marketing companies and upstream oil companies to ramp up LPG production levels for such quantity and period specified therein, including compliance with any restrictions on alternative uses of input streams required to produce the LPG,” MoPNG said.
The Centre will update the production schedule on January 1st and July 1st of every year including updates to LPG production from new refineries and upstream oil companies or additional LPG quantities from existing refineries and upstream companies due to changes to associated infrastructure and production technology, evacuation, supply, transport or distribution of LPG, it added.
Reliance Industries (RIL) has been allocated the highest quantity of 18,000 TPD of LPG, followed by Bharat Petroleum Corporation’s (BPCL) Kochi refinery (4,800 TPD), Mangalore Refinery & Petrochemicals (4,600 TPD), Nayara Energy (4,480 TDP) and HPCL Mittal Energy (3,600 TPD).
Cumulatively, all the PSU oil refining companies including Indian Oil Corporation, BPCL and Hindustan Petroleum Corporation are to produce a maximum of 31,470 TPD of LPG.
While the private sector in total has been mandated to produce a maximum of 25,880 TPD of LPG, the upstream companies a maximum of 6,460 TPD.
The order amends the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999, and introduces operational directions specifically for LPG production and supply.
It mandates public-sector, joint-venture and private-sector refineries, along with upstream oil companies, to develop and maintain adequate infrastructure for LPG storage, evacuation and transportation corresponding to the specified quantities.
The mandate also requires the refiners to implement technically and economically viable measures to maximise LPG output beyond their existing minimum producible quantities. The technologies include naphtha-to-LPG conversion and upgrades to gasoline-based fluid catalytic cracking units into petro-fluid catalytic cracking units.
“Centre for High Technology or any other authorised agency shall monitor the implementation of the directions issued under this clause. Any contravention of directions issued under this clause shall be punishable under the provisions of the Essential Commodities Act, 1955,” the notification said.
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