The Centre has increased commercial LPG allocation to 70% to support industries hit by global energy disruptions, while assuring citizens there is no shortage of domestic fuel supply across India.
Centre announces extra 20% LPG allocation to states
New Delhi: The Centre has increased commercial LPG allocation to states by an additional 20%, taking the total supply to 70% of pre-crisis levels. The move comes amid ongoing global energy disruptions linked to tensions in West Asia.
The decision was communicated by the Ministry of Petroleum and Natural Gas, with officials urging states and Union Territories to ramp up distribution for industrial use.
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Union Petroleum Minister Hardeep Singh Puri said the additional allocation will prioritise industries such as steel, automobile, textiles, chemicals and plastics.
These sectors, which employ large workforces, rely on LPG for specific processes where alternatives like piped natural gas are not viable. Preference will also be given to units that depend on LPG for specialised heating needs.
To access the increased allocation, industries must register with oil marketing companies and apply for piped natural gas connections through city gas distributors.
However, the government clarified that these conditions may be relaxed for sectors where LPG cannot be substituted by natural gas, ensuring uninterrupted operations.
States have also been asked to utilise the existing 10% reform-based allocation to maximise supply benefits.
The move follows the Centre’s reassurance that there is no shortage of petrol, diesel or LPG in the country. Authorities have cautioned against misinformation that could trigger panic buying among consumers.
Officials said supply chains remain stable, with domestic LPG availability sufficient to meet demand.
Domestic refinery production has increased significantly, now meeting over 60% of daily LPG demand. Imports have been scaled down, with the government securing additional cargoes from multiple countries to maintain reserves.
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India currently has around a month’s LPG supply in hand, while oil marketing companies continue to distribute millions of cylinders daily. Demand, which had briefly surged due to panic buying, has since stabilised.
To shield consumers from rising global oil prices, the government has reduced excise duty on petrol and diesel. Export duties have also been imposed on diesel and aviation turbine fuel to ensure adequate domestic availability.
Finance Minister Nirmala Sitharaman said the steps aim to protect consumers and maintain stability during ongoing geopolitical tensions.
