Key Details
The amendment converts LPG supply preparedness into an enforceable obligation covering public-sector, joint-venture and private refiners, as well as upstream oil companies.
Regulatory change | What it means |
|---|---|
Production infrastructure | Companies must maintain sufficient storage, evacuation and transport capacity for the quantities listed in the Order |
Technology upgrades | Technically and economically feasible measures must be used to maximise LPG production |
Government directions | The Centre may order refiners, oil-marketing companies and upstream producers to raise output for a specified quantity and period |
Production benchmark | The schedule records total LPG potential of 63.81 thousand metric tonnes per day |
Monitoring | The Centre for High Technology or another authorised agency will monitor implementation |
Enforcement | Violation of directions is punishable under the Essential Commodities Act, 1955 |
Updating mechanism | The production schedule must be revised every 1 January and 1 July |
LPG Supply Obligations Become Enforceable
The amendment adds new obligations to the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999. Covered companies must:
maintain adequate storage, evacuation and transport infrastructure for scheduled LPG volumes, directly or through rail and road tankers;
undertake feasible measures to increase production, including conversion of naphtha into LPG and refinery upgrades; and
inform the Centre for High Technology or another authorised agency when such upgrades are undertaken.
The Centre may also restrict alternative uses of input streams required for LPG production and direct companies to increase output within a stipulated period.
The Schedule Maps LPG Production Potential
The Order identifies 57.35 thousand metric tonnes per day of refinery-based LPG potential: 31.47 thousand tonnes from public-sector companies and 25.88 thousand tonnes from private companies. Another 6.46 thousand tonnes per day is identified from upstream operations of ONGC, Oil India and GAIL.
These figures should not automatically be read as daily production mandates. The schedule describes them as maximum production potential, while the operative provision refers to “current minimum producible quantities”. This leaves some ambiguity over whether they represent a capacity benchmark, production baseline or required output level.
What It Means for Consumers
The amendment seeks to strengthen domestic LPG availability by linking production capability with adequate storage and transport infrastructure. It also gives the Government a clearer mechanism to direct additional production when required.
It does not change LPG retail pricing or provide for lower cylinder prices. Consumer prices will continue to depend on international prices, import costs, taxes, subsidies and oil-marketing company pricing decisions.
Policy Relevance
Supply resilience gains a statutory foundation: LPG-production and evacuation preparedness will no longer depend solely on administrative coordination with oil companies.
Infrastructure must keep pace with capacity: Higher refinery output offers limited protection against shortages if storage, railway movement, tanker availability or regional distribution remain constrained.
Compliance requirements can change periodically: Twice-yearly revisions allow new facilities and capacity expansions to enter the framework but require companies to plan for evolving obligations.
Domestic output could moderate import exposure: Greater use of feasible refinery and upstream capacity may provide a buffer against international supply disruptions, although the Order establishes no import-reduction target.
The production benchmark needs clarification: Regulators should resolve the conflicting “minimum” and “maximum” descriptions to provide companies with an unambiguous compliance baseline.
Follow the Full Gazette Notification Here: Petroleum Products (Maintenance of Production, Storage and Supply) Amendment Order, 2026