The Ministry of Petroleum & Natural Gas (MoPNG) has issued an order to ensure continued and stable availability of Liquefied Petroleum Gas (LPG) for industrial consumption amid evolving supply conditions.
In a letter to all Secretaries to the Government of India and State and UT Chief Secretaries, Neeraj Mittal, Secretary, MoPNG, said that industrial units across sectors including pharma, food processing, polymers, agriculture, packaging, paint, steel, metals, ceramics, glass, aerosols, foundry, forging, heavy water, uranium, and seeds will receive 70% of their pre-March 2026 Bulk LPG consumption, subject to an overall sectoral ceiling of 0.2 TMT per day.
The move builds on communications issued between March 16 and 27, with an additional 10% allocation linked to Piped Natural Gas (PNG) reform milestones, aiming to ensure calibrated LPG distribution while encouraging a gradual shift towards alternative fuel infrastructure.
The MoPNG further stated that industries where LPG serves as a critical and non-substitutable input in the manufacturing process will be given inter-se priority in allocation. For such sectors, the requirement to apply for PNG connectivity has been waived, ensuring that industrial operations remain unaffected while maintaining compliance with stipulated conditions.
The Ministry has also drawn a clear distinction between industries that use LPG as a fuel, which can transition to PNG over time, and those for which LPG is an irreplaceable manufacturing input.
Narendra Modi and Union Petroleum and Natural Gas Minister Hardeep Singh Puri have both emphasised the need for stable domestic LPG supply despite significant volatility in global prices due to the conflict in West Asia. To address this, the government has opted to absorb rising costs through Oil Marketing Companies (OMCs) and increased domestic production, rather than passing the full burden onto consumers.
States and Union Territories have also been advised to disseminate the provisions of the Natural Gas and Petroleum Products Distribution (Pipelines and Other Facilities) Order, 2026 to all relevant stakeholders, promptly utilise the additional reform-linked LPG allocation, and expedite notification of the CBG policy communicated earlier, in line with broader efforts to strengthen energy accessibility and infrastructure.
India imports around 60% of its LPG, with nearly 90% of that typically transiting through the Strait of Hormuz. When the route came under stress, monthly imports dropped sharply from 2.04 million tonnes in February to 1.12 million tonnes in March—a 45% decline within 30 days.
(With inputs from PTI)