LPG Allocation for Industries: Polymer, Steel, Pharma

New Delhi, Apr 8 (PTI) The government has expanded commercial LPG supplies to a broader set of industrial sectors, allowing units to receive up to 70 per cent of their pre-West Asia war consumption, while maintaining a total sectoral cap of 200 tonnes per day.

In a communication to state authorities, the Ministry of Petroleum and Natural Gas said eligible industries include polymer, agriculture, packaging, paints, steel, metal, glass, pharma, food, uranium, heavy water, ceramics, foundries, forging units, and aerosol manufacturers.

The directive emphasises that priority should be given to industrial users where LPG is essential for specialised processes that cannot be replaced by natural gas, reflecting ongoing efforts to balance energy supply amid earlier disruptions to domestic and imported fuels. States have been asked to operationalise the allocation and ensure compliance with the overall sectoral limits.


Analysts say the move is aimed at easing supply constraints and sustaining industrial output while maintaining the government's broader strategy of prioritising compressed and piped natural gas for households and transport sectors.

"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 receive 70 per cent of the units' pre-March 2026 bulk non-domestic LPG consumption level subject to a overall sectoral limit of 0.2 TMT per day (200 tonnes per day)," the Oil Secretary Neeraj Mittal wrote to state governments.

Priority shall be accorded to units requiring LPG for specialised purposes, which cannot be substituted by natural gas, he added.