In a letter to the chief secretaries of all states and Union territories, Dr. Neeraj Mittal, Secretary of the Ministry, outlined the revised plan aimed at expanding LPG availability for industrial use. The letter stated, “In addition to the existing 50% allocation, an additional 20% is now proposed, bringing the total commercial LPG allocation to 70% of the pre-crisis level of packed non-domestic LPG.”
Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, highlighted that priority would be given to industries where piped natural gas cannot serve as a substitute. “The additional allocation will benefit sectors such as steel, automobile, textile, dye, chemical, and plastics, given their labour-intensive nature and critical role in supporting other essential industries,” the minister said.
Industries that rely on LPG for specialized heating needs, which cannot be replaced by natural gas, will receive preference. To access the additional 20% allocation, units are required to register with oil marketing companies (OMCs) and apply for PNG connections with city gas distribution (CGD) entities. However, these requirements may be waived for sectors that have no viable LPG alternative.
The Ministry also urged all states to immediately utilize the 10% reform-based allocation if they have not already done so. “With this, the allocation to commercial and industrial LPG will rise to 70% (including 10% reform-based), providing relief to industrial operations across the country,” the letter added.
Assuring Fuel Security
The government’s directive comes a day after it reassured the public about the stability of fuel supplies, emphasizing that there is no shortage of petrol, diesel, or LPG nationwide. The Ministry stressed that domestic LPG production has increased significantly, with refinery output rising by 40% to 50 TMT per day, meeting over 60% of estimated daily demand of 80 TMT and reducing import requirements to 30 TMT per day.
Currently, India has secured around one month’s LPG supply and is importing additional cargoes from the United States, Russia, and Australia, with deliveries managed through 22 terminals. Oil marketing companies are distributing over 50 lakh cylinders daily, stabilizing demand after a temporary spike to 89 lakh cylinders due to panic buying.
Earlier, the government had raised commercial LPG allocation to 50% to curb hoarding and black marketing.
Measures to Cushion Consumers
To protect consumers from rising oil prices amid the West Asia crisis, the central government has reduced excise duties on petrol and diesel by ₹10 per litre each for domestic consumption. Additionally, export duties have been imposed on diesel at ₹21.5 per litre and Aviation Turbine Fuel at ₹29.5 per litre to ensure adequate domestic availability.
