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2mo ago

India Fixes Facility-Level LPG Production Ceilings to Build a Supply Safety Net

The Aug. 13 order lets the Centre direct refiners and upstream firms to raise cooking-gas output when supplies tighten to protect household availability.

Smoke bellows from a domestic hearth known as a 'chulha' using dung cakes, made from the by-products of animal husbandry, as cooking fuel at a village in Greater Noida, Uttar Pradesh, India, on Monday, Feb. 22, 2021. Provisions for LPG cooking fuel subsidies, launched in 2016 by the Modi government offering cash rebates for purchasing an LPG connection and a loan for the first canister of the fuel and stove, were halved in the federal budget for the fiscal year ending March 2022 to 124.8 billion rupees ($1.7 billion) from 255 billion rupees a year earlier. | Bloomberg
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Commercial LPG cylinder price hike- Check city-wise rates of cooking gas

Overview

  • The Ministry of Petroleum and Natural Gas issued an order on Aug. 13 that sets maximum LPG production targets for 21 refineries and upstream companies with a combined potential of 63,810 tonnes per day.
  • Reliance’s Jamnagar domestic refinery was given the largest single allocation at up to 18,000 tonnes per day, while public-sector refineries together account for 31,470 tonnes and upstream gas processors about 6,460 tonnes.
  • Companies must keep adequate storage, evacuation and transport capacity and pursue only technically and economically feasible upgrades such as naphtha‑to‑LPG conversion or FCC changes to raise recovery.
  • The ceilings are a standing emergency framework the government can activate during supply constraints, not an immediate permanent output mandate, so imports will still be needed to meet full demand.
  • The order requires the Centre to review and update facility targets twice a year and is intended to reduce the risk of household shortages and rationing seen when Strait of Hormuz disruptions cut imports.