Reliance gets India’s largest LPG supply target under new refinery mandate

India has set facility-wise LPG production targets for supply disruptions, assigning Reliance’s Jamnagar DTA refinery 18,000 tonnes a day—the largest allocation. The mandate raises operational obligations for refiners as India remains heavily dependent on LPG imports for household cooking-gas demand.

— Source published Sun, 16 Aug, 2026, 10:44 IST · First seen Sun, 16 Aug, 2026, 10:51 IST · Source ET Small Business

What happened

Reliance Industries · India has set facility-wise LPG production targets to strengthen household cooking-gas supply during disruptions. Reliance's Jamnagar DTA

Key facts

  • 63,810 tonnes/day combined maximum LPG production potential
  • 18,000 tonnes/day LPG target for Reliance's Jamnagar DTA refinery
  • 4,480 tonnes/day target for Nayara Energy's Vadinar refinery
  • 6,460 tonnes/day target for ONGC and GAIL
  • 33.2 million tonnes India LPG consumption in FY26
  • 64%+ LPG import dependence

Why this matters

Reliance’s designated LPG role strengthens its energy-security positioning, creating opportunities to deepen downstream logistics, storage, and government-linked supply partnerships.

What to watch

  • Publication of detailed compliance rules, including minimum production, inventory, reporting and penalty provisions.
  • Any LPG import disruption, geopolitical shipping risk, freight spike or Saudi contract-price increase.
  • Changes in domestic LPG subsidies, retail pricing or oil-marketing-company under-recoveries.
  • Jamnagar maintenance schedules, refinery utilization and LPG yield data.
  • New government mandates for LPG storage, bottling, pipeline connectivity or emergency procurement.
  • Evidence that mandated LPG supply displaces higher-margin refinery or petrochemical output.
  • Increase LPG storage, rail/road dispatch capacity and emergency inventory planning around Jamnagar.
  • Optimize refinery product yields and feedstock procurement to preserve LPG output capability without materially impairing diesel, gasoline and petrochemical margins.
  • Seek clarity from the government on activation conditions, pricing, compensation, delivery points and penalties under the supply mandate.
  • Coordinate with oil marketing companies on emergency offtake, bottling capacity and last-mile cylinder distribution.
  • Use the designation to position Reliance as a strategic domestic-energy supplier in future policy, infrastructure and supply-security discussions.