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Govt extends bulk LPG allocation to more industries, retains sectoral cap

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The Centre has expanded the scope of bulk commercial LPG allocation to include a wider range of industrial sectors, while maintaining a sectoral cap, according to a communication sent to states by the Ministry of Petroleum and Natural Gas.In a letter issued to state governments, the Ministry of Petroleum & Natural Gas said the move was in continuation of its earlier directives, regarding the allocation of packed non-domestic LPG to various sectors.Under the existing framework, states had already been allocated up to 70 per cent of LPG supplies, including an additional 10 per cent linked to the implementation of specified reforms aimed at promoting Piped Natural Gas (PNG).The latest communication clarifies that industrial units across sectors such as pharmaceuticals, food processing, polymers, agriculture, packaging, paints, uranium, heavy water, steel, seeds, metals, ceramics, foundry, forging, glass and aerosols will now also be eligible to receive up to 70 per cent of their pre-March 2026 bulk LPG consumption levels. This allocation, however, will be subject to an overall sectoral ceiling of 0.2 TMT (thousand metric tonnes) per day.However, the ministry has laid down key conditions for the allocation. “Priority shall be accorded to units requiring LPG for specialised purposes, which cannot be substituted by natural gas,” the letter said.Additionally, industries must comply with earlier stipulations mandating registration with Oil Marketing Companies (OMCs) and submission of applications for PNG connections to City Gas Distribution (CGD) entities.However, the requirement to apply for PNG will be waived for units where LPG is an integral input in the manufacturing process or for specialised purposes that cannot be substituted by natural gas.

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