The Centre has raised commercial LPG allocation to states and union territories to 70% of pre-crisis levels, prioritising steel, automobiles, textiles and chemicals industries. The move comes amid supply disruptions from the West Asia war's closure of the Strait of Hormuz, enabled by higher domestic production and imports from outside the region.
Petroleum Secretary Neeraj Mittal wrote to chief secretaries of all states and union territories, announcing an additional 20% increase in commercial LPG allocation, bringing it to 70% of pre-crisis levels. He directed priority to steel, automobiles, textiles, dyes, chemicals and plastics industries, "which are labour intensive and provide support to other essential sectors". Even among these, process industries requiring LPG for specialised heating not substitutable by natural gas should get top priority, he said.
Supply to commercial and industrial users was curtailed after the Strait of Hormuz closed amid the West Asia war, to prioritise household kitchen fuel. India meets about 60% of its LPG demand through imports, with 90% from West Asia via the strait. The government ordered refiners to maximise LPG output and divert propane, butane and other streams from petrochemicals, boosting domestic production by 40% over pre-war levels, covering around 16% of total demand.
Earlier allocations included 20%, plus 10% for PNG infrastructure steps, and on March 21, another 20% for restaurants, hotels, food processing and similar. Registration with retailers and PNG applications remain mandatory for this latest hike, except for industries with irreplaceable LPG uses.
On Thursday, the Petroleum Ministry stated domestic production meets over 60% of the current 80,000-tonne daily requirement, mainly households. Net import needs fell to 30,000 metric tonnes daily. Some 800,000 tonnes of cargoes from the US, Russia, Australia and others are en route, securing one month's supply, with more procurement ongoing. Consumers are urged to shift to piped natural gas where possible.
