India’s domestic LPG production rose 40% in March 2026, driven by refineries operating at maximum capacity. The government has assured uninterrupted supply and offered states an additional 10% allocation of commercial LPG. This move aims to ease distribution pressure, stabilize markets, and support the transition toward piped natural gas.
Joint Secretary Sujata Sharma of the Ministry of Petroleum and Natural Gas confirmed that refineries are running at their highest capacity to meet demand. The government emphasized that crude oil availability remains stable, ensuring uninterrupted fuel supply despite global energy uncertainties.
Policy And Market Impact
• Domestic LPG production increased by 40% in March 2026
• Refineries operating at full capacity to meet rising demand
• States offered 10% extra allocation of commercial LPG
• Move supports long-term transition to piped natural gas (PNG)
• Crude oil availability remains stable despite global tensions
Public Impact
The surge in LPG production is expected to ease supply concerns, stabilize prices, and ensure households and businesses have reliable access to cooking fuel. The additional allocation to states strengthens distribution networks and supports India’s energy security goals.
Key Highlights
• LPG production up 40% in March 2026
• Refineries running at full capacity nationwide
• Government offers states 10% extra LPG allocation
• Supports transition to piped natural gas
• Ensures uninterrupted supply despite global energy risks
Sources: Moneycontrol, The Statesman, Zee News