The government on Wednesday raised the allocation of liquefied petroleum gas (LPG) to 70 per cent for industrial users across sectors such as pharmaceuticals, food processing, polymers, agriculture and packaging, as part of a broader set of measures to ease fuel constraints amid global supply uncertainties.
According to a communication from the petroleum ministry, the enhanced allocation will be capped at 0.2 thousand metric tonne per day for each sector. Industrial units will receive 70 per cent of their pre-March 2026 bulk non-domestic LPG consumption, subject to the sectoral ceiling.
In a letter to states, Neeraj Mittal, secretary, Ministry of Petroleum and Natural Gas, said the revised allocation would apply to a wide range of industries including paint, steel, ceramics, glass, foundry, forging, aerosol, uranium and heavy water units. Eligible units will need to register with state-run oil marketing companies to avail the additional LPG supplies.
The ministry said commercial users would also be required to apply for piped natural gas (PNG) connections from city gas distribution companies and take steps to migrate to natural gas. However, this requirement will be waived for industries where LPG is a critical or non-substitutable input in the manufacturing process.
In parallel, the government announced a 5 per cent increase in overall natural gas allocation for fertiliser plants, taking supplies to about 95 per cent of the units’ six-month average consumption. To support the petrochemical sector, it also allowed 800 million tonne per day of propane and butane to be diverted for petrochemical production.
Separately, officials said steps were being taken to ensure coal affordability. Coal India Ltd has cut reserve prices by 20 per cent under the e-auction route and stepped up supply through both e-auctions and the state-nominated agency mechanism.
In March 2026, Coal India offered 32.53 million tonne of coal through e-auctions, of which 13.32 million tonnes were booked. For April, 30 e-auctions have been planned, offering 25.80 million tonne, with bookings of 1.24 million tonne so far, the government said. |
