New Delhi: In what will be a major respite for industry, the government has increased the allocation of commercial LPG to states to 70% of pre-crisis levels. The aim is to ease pressure on key industries amid global energy challenges.
Petroleum minister Hardeep Singh Puri said the move will support sectors such as steel, automobile and textiles, along with other labour-intensive industries. Priority will be given to industries where piped natural gas cannot replace LPG, he said.
The minister said in a post on X that while many countries have adopted strict fuel-saving measures such as odd-even schemes, four-day work weeks, and higher fuel
prices, India continues to ensure energy security, availability and affordability.
This is considered a bold move, given the logjam that still exists in the Strait of Hormuz. Industry, meanwhile, has welcomed the decision by the government. It was getting extremely difficult for smaller units to maintain operations after a 50% cap on the supply of LPG.
Petroleum ministry secretary Neeraj Mittal has also written to all states and Union Territories, informing them of the revised allocation. An additional 20% allocation is being provided over the existing 50%, taking total commercial LPG supply to 70% of pre-crisis levels, he said in his letter, as reported by News 18.
This extra allocation will prioritise industries such as steel, automobile, textile, dye, chemicals and plastics, especially those that rely on LPG for specialised heating and cannot switch to natural gas, he said.
The secretary also urged states to immediately utilise the 10% reform-based allocation, noting that this would further support industrial operations.