NEW DELHI: The government on Friday increased commercial LPG allocations to 70% from 50% earlier, providing relief to industries affected by supply disruptions due to the ongoing conflict in West Asia.
According to an order addressed to all Chief Secretaries of states and Union Territories, the additional allocation will be provided to industries, with priority given to steel, automobile, textile, dye, chemicals, and plastics sectors, which are labour-intensive and support other essential sectors.
Among these, preference will be given to process industries or those requiring LPG for specialised heating purposes that cannot be substituted by natural gas.
As the supply of LPG and LNG has been impacted due to the ongoing conflict in West Asia, the country had reduced LPG supply to commercial entities to ensure that 33 crore domestic LPG consumers are not affected.
Initially, the government allocated only 20% of the average monthly requirement to commercial users, along with an additional 10% for states promoting the transition from LPG to piped natural gas (PNG).
In a subsequent order, the petroleum ministry allowed an additional 20% allocation, taking the total to 50%.
To receive this additional LPG, industries are required to register with Oil Marketing Companies (OMCs) and apply for PNG connections with city gas distribution entities. However, this requirement may be relaxed for industries where LPG use is critical and cannot be substituted by PNG.
The letter also urges states to circulate the Pipeline Order 2026 among relevant departments and to utilise the reform-based 10% allocation if they have not already done so.