Govt directs refiners to produce up to 63,810 tonnes/day LPG till December 2026
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
The Central Government of India has imposed a maximum daily production limit of 63,810 tonnes for liquefied petroleum gas (LPG) for all refineries, joint ventures, and private sector entities until December 2026. This unprecedented bi-annual production limit was instituted in response to the disruption in LPG supplies following the closure of the Strait of Hormuz due to conflict in West Asia.
The Ministry of Petroleum & Natural Gas (MoPNG) issued a notification on August 13, 2026, mandating the refiners to ramp up LPG production levels as deemed necessary for public interest, ensuring adequate availability, equitable distribution, and fair pricing of domestic LPG. The Centre will update the production schedule on January 1st and July 1st each year, taking into account changes in infrastructure, production technology, and evacuation, supply, transport, or distribution of LPG.
Leading refiners such as Reliance Industries and Bharat Petroleum Corporation have been allocated significant quantities, with the remaining production shared among public sector refineries, private sector entities, and upstream oil companies. The notification amends the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999, and mandates the implementation of technically and economically viable measures to maximize LPG output, with penalties for non-compliance under the Essential Commodities Act, 1955.
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