Centre Boosts Commercial LPG Supply to 70% Amid Shortage

New Delhi: The Centre on Friday raised the allocation of commercial LPG cylinders to 70 per cent of demand, up from 50 per cent earlier, to ease pressure on industrial and commercial users affected by supply disruptions linked to the Iran conflict.

The government said labour-intensive sectors such as steel, automobiles, textiles, dyes, chemicals, and plastics will receive priority, as these industries also support a wide range of essential services. Special preference will be given to process industries that depend on LPG for specialised heating requirements that cannot be replaced by natural gas.

According to the order, an additional 20 per cent allocation has been approved over the existing 50 per cent supply, taking total availability to 70 per cent of pre-crisis levels of packed non-domestic LPG.

However, to access the extra allocation, commercial and industrial LPG users must register with oil marketing companies and apply for piped natural gas (PNG) with their respective city gas distribution entities. The requirement will be waived for industries where LPG is essential and cannot be substituted.

The Centre has also urged states to utilise the 10 per cent reform-based allocation, which would further help stabilise industrial operations.

Earlier, the additional 20 per cent allocation announced on March 21 prioritised sectors such as restaurants, dhabas, hotels, industrial canteens, food processing units, community kitchens, and subsidised food outlets. The scheme also included 5 kg free trade LPG cylinders for migrant labourers.

As per Petroleum Ministry data, more than 37,000 of these 5 kg cylinders had been sold to migrant workers by March 25. Distribution of cylinders will be carried out by state governments and district authorities based on local priorities.

Meanwhile, Iran has indicated that more Indian ships carrying LPG will be allowed to transit through the Strait of Hormuz following discussions between the two countries, offering some relief to supply concerns. 

With inputs from IANS