The Central government has raised the allocation of commercial LPG cylinders to 70% from the previous 50% to address the gas shortage caused by disruptions in imports due to the Iran war. Priority will be given to labor-intensive sectors like steel, automobiles, textiles, dyes, chemicals, and plastics, which also support other essential industries. The additional 20% allocation will bring the total commercial LPG allocation to 70% of the pre-crisis level of packed non-domestic LPG.
To avail the extra 20% allocation, all commercial and industrial LPG consumers must register with oil marketing companies and apply for PNG with the city gas distribution entity in their cities. The government emphasized that industries requiring LPG for specialized heating purposes that cannot be substituted by natural gas will have their requirements met.
States are urged to promptly utilize the 10% reform-based allocation if they have not already done so. This allocation, combined with the 20% increase, will raise the commercial/industrial LPG allocation to 70%, providing relief to industrial operations in the states. The earlier 20% allocation prioritized sectors like restaurants, hotels, industrial canteens, food processing units, and migrant laborers.
According to recent data from the petroleum ministry, over 37,000 5kg FTL cylinders have been sold to migrant laborers as of March 25. State governments and district authorities will distribute the LPG cylinders based on their assessment of priority sectors or consumers. Additionally, Iran has agreed to allow more Indian ships carrying LPG to transit through the Strait of Hormuz following discussions with Indian authorities.
