- Union Petroleum Ministry raised commercial LPG allocation to 70% of pre-crisis levels
- Increase includes existing 50% plus an additional 20% for industrial sectors
- Priority given to labor-intensive industries relying on LPG for specialized heating
The Union Petroleum Ministry on Friday announced a significant increase in the allocation of non-domestic or commercial liquefied petroleum gas for states, aiming to provide relief to industries affected by supply constraints. Gas supply has been hit due to the virtual blockade at the Strait of Hormuz after the outbreak of the Iran war. India imported about 60% of its LPG consumption, and of which about 90% came through the narrow waterway.
In a letter, Petroleum Secretary Neeraj Mittal informed Chief Secretaries of all states and union territories that commercial and industrial LPG supplies will now be raised to 70% of the pre-crisis level. This includes the existing 50% allocation and an additional 20% being granted now.
The decision follows earlier communications issued on March 16, 18 and 21, under which states were initially allotted 40% of their pre-crisis quota, with a further 10% linked to reforms promoting piped natural gas.
Several states have already undertaken these reforms and availed themselves of the additional quota, the letter said.
When rest of the world has been taking drastic fuel conservation measures such as odd-even, 4 day work weeks, school and office closures and increasing fuel prices by 20-30%, India under PM @narendramodi Ji remains an oasis of energy security, availability and affordability.… pic.twitter.com/5aTZfGiKGE
— Hardeep Singh Puri (@HardeepSPuri) March 27, 2026
The newly announced 20% allocation will prioritise labour-intensive sectors such as steel, automobile, textiles, dyes, chemicals and plastics, especially process industries that depend on LPG for specialised heating and cannot switch to natural gas.
"India under PM Narendra Modi remains an oasis of energy security, availability and affordability," said Petroleum Minister Hardeep Singh Puri.
The letter also urges states to ensure industries comply with registration norms and apply for piped natural gas connections where applicable. States have been asked to circulate the Natural Gas and Petroleum Products Distribution Order, 2026, and to quickly claim the remaining reform-linked allocation to support industrial operations.
On March 8, the government issued an order directing refineries and petrochemical complexes to maximise LPG production by diverting propane, butane, propylene and butenes streams to the LPG pool.
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