India Sets Daily LPG Production Target Amidst West Asia Conflict

India has established a maximum daily cooking gas (LPG) production target of 63,810 metric tons for its state-run and private refineries. This mandate, issued on August 13, aims to secure domestic supplies and build buffer stocks.

The government’s directive directly responds to critical fuel supply disruptions. These interruptions are attributed to the US-Israeli war against Iran and the subsequent blockade of the Strait of Hormuz.

Understanding the Mandate

This initiative requires companies to maintain robust infrastructure for storing and transporting LPG. This includes utilizing direct distribution methods, railways, and road tankers to meet the specified quantities.

Key Production Figures

• Maximum daily LPG production target: 63,810 metric tons
• India’s pre-conflict Middle East imports: Approximately 90% of cooking gas
• Reliance Industries Ltd.’s individual daily target: 18,000 tons
• Collective contribution from Oil and Natural Gas Corp, Oil India Ltd, and Gail India Ltd: 10% of the national target

Specific targets have been allocated to individual refiners, with Reliance Industries Ltd.‘s domestic-market-focused refinery expected to produce 18,000 tons of LPG daily. State-run entities like Oil and Natural Gas Corp, Oil India Ltd, and Gail India Ltd are collectively projected to contribute 10% of the national target.

The federal government plans to update these production targets bi-annually, in January and July. This adjustment process will account for new production capacities and increased output from existing refineries.

Before the conflict, India sourced around 90% of its cooking gas imports from the Middle East. This heavy reliance highlights the vulnerability that the current mandate seeks to address.

This strategic move underscores India’s commitment to fortifying its energy security and reducing dependence on volatile global supply routes, particularly for essential household fuels.