New Delhi: The Ministry of Petroleum and Natural Gas has approved an additional 20 percent allocation of commercial LPG on Friday, taking the total supply to 70 percent of pre-crisis levels, as the disruption in LPG flows through the Strait of Hormuz continues. In an order dated March 27, Petroleum Secretary Dr Neeraj Mittal said the government had decided to build on earlier allocations and raise commercial LPG supply further for states and industry.
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The letter said states had already been allotted 40 percent of pre-crisis quota, with another 10 percent given on the basis of reforms to promote Piped Natural Gas (PNG), and that with “an additional 20 percent (is) now proposed” will take the total commercial LPG allocation to 70 percent of the pre-crisis level of packed non-domestic LPG.
The order makes it clear that the fresh allocation is not meant to be spread evenly across all users. It says additional LPG should go first to steel, automobile, textile, dye, chemicals and plastics, calling them labour-intensive sectors that support other essential industries. It adds that “priority shall be given to process industries or those requiring LPG for specialised heating purposes that cannot be substituted by Natural Gas.”
The government had earlier asked all LPG users who can switch to PNG to do so or else face disconnection of services. The natural gas supply situation is a little better as India has more diversified sources of imports in comparison to LPG, 90 percent of which used to come through the Strait of Hormuz.
The letter also says the earlier conditions laid out in the ministry’s March 21 communication will continue to apply, including registration with OMCs and applications for PNG, whever possible, to CGD entities. It carves out an exception for industries that use LPG in processes or for special heating needs that cannot be replaced by natural gas.
Mittal told state governments to circulate the Natural Gas and Petroleum Products Distribution (Pipelines and Other Facilities) Order, 2026, to all departments and bodies. He also urged states to use the 10 percent reform-based allocation without delay if they had not already done so. The letter closes by saying that with the additional allocation, “the allocation to commercial/industrial LPG will rise to 70 percent (with 10 percent reform based) and enable relief to industrial operations in the state.”
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The Petroleum Ministry said that about 29,656 metric tonnes of commercial LPG had been uplifted since March 14. The fresh order is meant to ease the pressure on industries that have been hit by the disruption in LPG supplies through the Strait of Hormuz, a route that had carried the bulk of India’s imports before the current conflict escalated.
