Reliance Industries Ltd. is pivoting operations at its Jamnagar, Gujarat, refinery to prioritise domestic fuel needs as the escalating Iran war threatens global energy stability.

Reliance Industries operates the world’s largest oil-refining complex in Jamnagar, Gujarat. (Reuters)

The company led by billionaire Mukesh Ambani will maximise production of LPG and divert natural gas from its KG-D6 block in the Bay of Bengal to “priority sectors”, according to an exchange filing on Tuesday (10 March 2026).

The move follows a government mandate to shield Indian households from price volatility and supply shortages triggered by the regional war.

LPG shortage in India?

As global energy markets face heightened uncertainty, New Delhi has moved to redirect fuel supplies away from industrial users toward the common consumer. Reliance’s Jamnagar facility—the world’s largest integrated refining hub—is central to this effort.

“Ensuring uninterrupted access to essential fuels for Indian households remains a national priority,” Reliance said in the statement. “Our teams are working around the clock to optimise refinery operations and enhance LPG output.”

Reliance KG-D6 operations

Beyond refining, Reliance is adjusting its upstream output. Natural gas produced from the KG-D6 basin will be diverted to support the government’s allocation priorities, which typically favour fertiliser plants, power generation, and city gas distribution over commercial industries.

The shift underscores two critical trends:

• National interest over exports: Reliance, often a major exporter of refined products, is focusing inward to ensure domestic price stability.
• War-induced volatility: The Iran war, and the consequent surge in crude oil prices, has forced a re-evaluation of India’s energy security, pushing the private sector to align closely with state mandates.

“For Reliance, India’s energy security and the well-being of millions of Indian families always come first,” the company stated, adding that it remains in full compliance with government allocation guidelines.

On Tuesday, Reliance Industries shares fell 1.08% to ₹1,409.05 apiece on the BSE even as the benchmark S&P BSE Sensex ended the day 0.82% higher at 78,205.98 points.