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Govt Increases LPG Supply to 70% for Industries Amid Crisis, Says Neeraj Mittal

In a major step to support industrial operations during ongoing supply challenges, the government has increased the allocation of commercial LPG to 70% of pre-crisis levels, offering much-needed relief to key sectors.

The decision was communicated by Neeraj Mittal, Secretary of the Ministry of Petroleum and Natural Gas, in a letter addressed to Chief Secretaries of all states and Union Territories.

What Has the Government Announced?

The Centre has approved an additional 20% allocation of LPG, over the existing 50%, taking the total supply for commercial and industrial use to 70% of the pre-crisis level.

This move aims to stabilise industrial production and reduce the impact of global supply disruptions.

Which Industries Will Benefit?

The government has prioritised labour-intensive and critical sectors, including:

  • Steel
  • Automobile
  • Textile
  • Dye and chemicals
  • Plastics

Special preference will be given to industries that depend on LPG for specialised heating processes where natural gas cannot be used as a substitute.

Why Is This Move Important?

The increase in LPG allocation comes at a time when industries are facing pressure due to supply constraints and rising global energy prices.

By boosting supply, the government aims to:

  • Maintain industrial output
  • Protect jobs in labour-intensive sectors
  • Support essential supply chains

Additional Reform-Based Allocation

The Centre has also urged states to immediately utilise the 10% reform-based LPG allocation, which would further strengthen supply availability.

With this, the total allocation for industrial LPG can effectively reach 70%, ensuring smoother operations across sectors.

What Does This Mean for the Economy?

This decision is expected to provide stability to industries that rely heavily on LPG, especially those that cannot switch to alternative fuels.

It also reflects the government’s effort to balance domestic energy needs while managing global supply disruptions.

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1 COMMENT

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