Winning Bizness Desk
Mumbai.A fresh push by the Centre to ease the ongoing gas crunch has led to a major increase in commercial LPG allocation across the country. The government has raised the quota from 50 percent to 70 percent, aiming to restore supply closer to pre-crisis levels. The move is expected to bring relief to industries heavily dependent on LPG, even as supply chains remain under pressure due to global disruptions.
Focus on labour-intensive sectors for allocation
The government has made it clear that priority will be given to sectors employing large numbers of workers and supporting essential industries. Steel, automobile, textile, dyes, chemicals and plastics have been identified as key beneficiaries under the revised allocation policy.
Key sectors identified for priority supply
- Steel industry
- Automobile manufacturing
- Textile production units
- Dyes and processing industries
- Chemical manufacturing
- Plastics sector
Middle East tensions disrupt supply chain
The decision comes against the backdrop of supply disruptions triggered by conflict in the Middle East. The Petroleum and Natural Gas Ministry, through Secretary Dr Neeraj Mittal, has formally communicated the revised allocation to all states and Union Territories. The aim is to stabilise supply for commercial and industrial usage, which had been reduced earlier to safeguard domestic consumption.
Conditions linked to additional LPG allocation
While increasing the quota, the government has attached conditions for availing the additional 20 percent supply. Commercial and industrial consumers must register with oil marketing companies and also apply for piped natural gas connections through city gas distribution firms. The policy is designed to gradually shift industries from LPG to PNG.
- Mandatory registration with oil companies
- Application for PNG connection required
- Transition plan from LPG to PNG encouraged
Relief for industries needing specialised heating
An important exemption has been introduced for process industries that require specialised heating not supported by natural gas. Such industries will continue to receive the increased LPG allocation without the PNG application condition, ensuring their operations remain unaffected.
States urged to implement reforms and maximise benefits
The Centre has also asked states to take advantage of a 10 percent reform-based allocation mechanism. So far, 27 states and Union Territories have issued orders for non-domestic LPG supply, while oil companies are directly supplying cylinders in regions yet to implement the system.
Earlier, on March 21, the government had already prioritised restaurants, dhabas, hotels, industrial canteens and food processing units under an additional 20 percent allocation. Supply of 5 kg free-trade LPG cylinders for community kitchens and migrant workers has also been ensured, with over 37,000 cylinders sold by March 25.
Global conflict triggers supply concerns for India
The current crisis traces back to escalating tensions involving the United States, Israel and Iran, which disrupted critical energy routes including the Strait of Hormuz. This corridor is vital for India, which imports nearly 80 to 85 percent of its LPG. Despite concerns, the government has maintained that there is no immediate shortage and has urged people to avoid panic or rumours.
