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Centre Boosts Commercial LPG Supply to 70% for Key Industries

The Central government has increased the allocation of commercial LPG cylinders to 70% of required demand to provide relief to industrial users facing shortages. Priority is being given to labour-intensive sectors like steel, automobiles, and textiles, especially where LPG is used for specialized processes. To avail the additional allocation, commercial consumers must register with oil marketing companies. The move follows import disruptions and comes as Iran indicates it may allow more Indian LPG shipments through the Strait of Hormuz.

Key Points: Govt Raises Commercial LPG Allocation to 70% for Key Sectors

  • Supply raised from 50% to 70% of demand
  • Priority for steel, auto, textile, dye, chemical, plastic sectors
  • Registration with oil firms required for extra allocation
  • Over 37,000 cylinders sold to migrant labourers
2 min read

Centre increases supply of commercial LPG to 70 pc, prioritises labour-intensive sectors

Indian government increases commercial LPG supply to 70% of demand, prioritizing steel, auto, and textiles to ease industrial shortages amid import disruptions.

Centre increases supply of commercial LPG to 70 pc, prioritises labour-intensive sectors
"such requirement would stand waived - Government order"

New Delhi, March 27

The Central government on Friday increased the allocation of commercial LPG cylinders to 70 per cent of the required demand, from 50 per cent earlier, in order to provide relief to industrial and commercial users amid the shortage of gas caused by the disruption in imports due to the Iran war.

Priority will be given to labour-intensive sectors such as steel, automobiles, textiles, dyes, chemicals and plastics as they also support other essential industries.

Among these sectors, priority shall be given to process industries or those requiring LPG for specialised heating purposes that cannot be substituted by natural gas.

In addition to the existing 50 per cent allocation that is being made, another 20 per cent is proposed, which would bring the total commercial LPG allocation to 70 per cent of the pre-crisis level of packed non-domestic LPG, the government order said.

The government, however, noted that to avail the additional 20 per cent 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 respective cities.

"If industries specified in paragraph 1 of this letter (steel, automobile, textile, dye, chemicals, and plastics), where LPG is used in the process and for special purposes which cannot be substituted by natural gas, such requirement would stand waived," the order said.

The government also urged all states to immediately avail the 10 per cent reform-based allocation, if they have not already done so. "With this, the allocation to commercial/industrial LPG will rise to 70 per cent (with 10 per cent reform-based) and enable relief to industrial operations in the state," the order explains.

The earlier additional 20 per cent allocation, which was issued on March 21, gave priority to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by state government or local bodies for food, community kitchens, as well as 5 kg (free trade LPG) FTL for migrant labourers.

According to the latest data from the petroleum ministry, as of March 25, more than 37,000 - 5kg FTL cylinders have been sold to migrant labourers.

The LPG cylinders will be distributed by state governments and district authorities based on their judgement of priority sectors or consumers.

Meanwhile, Iran has indicated that it will allow more Indian ships carrying LPG to transit through the Strait of Hormuz. The development comes after the Indian government held talks with the Iranian authorities on the issue.

- IANS

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Reader Comments

S
Sarah B
Good to see a focus on labor-intensive sectors. Protecting jobs in automobiles and textiles is vital for economic stability. However, the condition to register for PNG seems like an extra bureaucratic step for businesses already struggling. The waiver for process industries is a good clarification though.
P
Priyanka N
Finally some relief for the MSME sector! My uncle runs a small dyeing unit in Surat and they were about to halt operations. The 5kg cylinders for migrant labourers is also a very thoughtful step. Shows the government is thinking about both industry and the common worker. 👍
A
Aman W
While the intent is good, I'm concerned about the implementation. "Distribution based on judgement of priority" by state authorities can lead to delays and potential misuse. We need a transparent, online portal for applications to ensure the gas reaches the genuine small factories and not just the connected ones.
M
Michael C
The diplomatic effort with Iran to allow more ships through the Strait of Hormuz is the real story here. Securing the supply chain is as important as allocating the existing stock. This proactive approach on the international front is commendable for long-term energy security.
K
Kavya N
What about the restaurants and dhabas? The article says they were in the earlier priority list on March 21st, but now the focus seems shifted. The food service industry employs millions too and is still recovering. Hope they haven't been forgotten in this new order.

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