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Tezzbuzz Desk- To protect the supply of LPG in India from being affected by any major global crisis, the Central Government has prepared a permanent system regarding LPG production. India's heavy dependence on imports for LPG came to light during the conflict in West Asia and threats to supplies through the Strait of Hormuz. After this experience, the Ministry of Petroleum and Natural Gas has set the target of LPG production for 21 refineries and upstream companies of the country.

Under the new plan of the government, a target of daily production of 63,810 tonnes of LPG has been set by combining these companies. This is about 70 percent of the country's daily LPG consumption of about 91,000 tonnes. This means that in case of any major international crisis or disruption in imports, the country will have the ability to maintain supply by rapidly increasing domestic production.

Why is India heavily dependent on imports?

In the financial year 2026, India will approximately Consumed 3.32 crore tonnes of LPG. That means, about 91,000 tonnes of LPG is required every day in the country. Out of this, about 1.31 crore tonnes of LPG was produced domestically, while about 2.13 crore tonnes of LPG was imported from abroad. It is clear from this figure that more than 64 percent of India's LPG requirement was dependent on imports. This is the reason why concern about LPG supply increases during the global crisis.

Strait of Hormuz is very important for India. Through this route, a large part of India's LPG is imported from major countries like Saudi Arabia. India's LPG supply may be affected if tension increases in West Asia or there is any obstruction on this sea route.

The government had taken emergency steps in March

During the crisis, the government in March directed refineries to divert some streams used for petrochemical production to LPG production. Apart from this, initially the supply to industrial and commercial consumers was also banned.

For domestic consumers, the gap between cylinder bookings was increased and people were encouraged to use piped natural gas. Nearly increased domestic LPG production during crisis 55,000 tonnes per day Was delivered to. These emergency restrictions were gradually lifted from mid-June after the situation became normal. Now the government has made further preparations for the future.

How much will 21 companies have to produce?

The government has approved a total of 21 companies 63,810 tonnes per day Production target has been set. This is more than double the domestic production for fiscal year 2026. Including 18 refineries of public sector companies 31,470 tonnes per day The target has been set. In this, the biggest target has been given to Reliance Industries' Domestic Tariff Area Refinery located in Jamnagar. him every day 18,000 tons LPG The production target has been given.

At the same time, Russia's Rosneft-backed Nayara Energy's Vadinar Refinery 4,480 tonnes per day The target has been given. By combining upstream gas companies like ONGC and GAIL 6,460 tonnes per day The target has been set.

What will companies have to do?

According to the government order, refining and upstream companies will have to strengthen the infrastructure required for storage, extraction and transportation of LPG. This also includes arrangements to ensure smooth movement of LPG through railways and road tankers.

Companies will have to take steps like converting naphtha to LPG and upgrading gasoline-based units to petro-fluid catalytic cracking units if technically and economically feasible. If necessary, the government can also direct companies to increase LPG production by a certain amount in a stipulated time. The special thing is that the production schedule is revised every year. 1 January and 1 July Will be updated. With this, new refineries, increased capacity and new technology will also be included in the system.

Will dependence on imports reduce?

The main objective of this plan of the government is to create the capacity to rapidly increase domestic LPG production in times of crisis. With this, India can get more security in case of international supply disruption.

However, this arrangement will not immediately free India from LPG imports. A large part of the country's total consumption is still met by imports. But through new production targets and infrastructure, the government has taken a big step towards creating a strong domestic backup system to maintain LPG supplies during any future global crisis.