New Delhi: Through a letter addressed to state governments and state secretaries, the Central government allowed the extension of commercial LPG cylinder supply to more industrial units across sectors. The list of these sectors includes, pharma, food, polymer, agriculture, packaging, paint, uranium, heavy water, steel, seed, metal, ceramic, foundry, forging, glass and aerosol.
Follow Energy Watch on X
“It is now conveyed that industrial units in the sectors of Pharma, Food, Polymer, Agriculture, Packaging, Paint, Uranium, Heavy Water, Steel, Seed, Metal, Ceramic, Foundry, Forging, Glass, Aerosol etc shall also receive 70 percent of the units' pre-March 2026 bulk non-domestic LPG consumption level subject to an overall sectoral limit of 0.2 TMT/day,” an order, dated April 8, issued by Petroleum Secretary Dr Neeraj Mittal said.
The Ministry of Petroleum and Natural Gas said the directive is part of ongoing measures to manage fuel supply, and follows earlier communications on allocation of packed non-domestic LPG. States have already been allotted 70 percent supply, including “an additional allocation of up to 10 percent linked to the achievement of specified reforms for promotion of PNG.”
The order said priority will be given to sectors where LPG use cannot be easily replaced. “Inter-se priority shall be accorded to units requiring LPG for specialised purposes which cannot be substituted by Natural Gas,” said the order.
It retained earlier conditions requiring industries to register with oil marketing companies and apply for PNG connections to city gas distribution entities. However, it clarified that “if the industries specified… where LPG is used as an integral input in the manufacturing process or for specialised purposes that cannot be substituted by Natural Gas, the requirement relating to application for PNG shall stand waived.”
The ministry has also nudged states and departments to implement related policy measures. “I also urge you to… avail the 10 percent reform-linked LPG allocation to do so expeditiously, if not done so far,” the order said.
It further directed authorities to “Communicate the Natural Gas and Petroleum Products Distribution (Pipelines and Other Facilities) Order 2026 to all concerned Departments/bodies” and to “Expeditiously notify the CBG States’s policy.”
The government has raised total commercial LPG allocation to about 80 percent of pre-crisis levels, including the reform-linked component, as part of broader supply management measures. A three-member committee of executive directors from IOC, HPCL and BPCL is coordinating with state authorities and industry bodies to plan distribution.
About 93,085 MT of commercial LPG (equivalent to over 49 lakh 19-kg cylinders) has been sold since March 14, said the Petroleum Ministry.
Follow Energy Watch on LinkedIN
The government said priority sectors continue to receive protected supplies, including 100 percent allocation to domestic PNG and CNG transport. Based on available inventory and scheduled LNG cargo arrivals, gas allocation to fertiliser plants is being increased by 5 percent to about 95 percent of their six-month average consumption, effective April 9.
