REGULATORY · MARKET STRUCTURE · INDIA
India directs higher LPG output
Change
On March 5, 2026, India’s MoPNG ordered refiners to maximise LPG output and supply it to IndianOil, HPCL and BPCL for domestic consumption only.
Why it matters
An MoPNG order dated March 5, 2026 applies to all oil refining companies operating in India. It directs refiners to maximise LPG production. It requires propane and butane streams produced, recovered, fractioned, or otherwise available with refiners to be utilised for LPG production. It requires the LPG produced to be made available to IndianOil, Hindustan Petroleum and Bharat Petroleum. The LPG covered by the order is for sale to consumers for domestic consumption only.
Implications
- • Refiners must allocate propane and butane streams toward LPG production.
- • LPG produced under the order must be supplied to IndianOil, HPCL and BPCL.
- • Public sector OMCs must prioritise LPG supply to domestic consumers.
- • The order restricts covered LPG to domestic consumption only.
Who is affected
- • Oil refining companies
- • Public sector oil marketing companies (IndianOil, HPCL, BPCL)
- • LPG distribution and retail operations
Source
Topics
World & Politics Policy & Regulation Law & Public Safety Regulatory Actions Energy & Power Oil & Gas