New Delhi: The government of India on Friday moved to ease pressure on industry by raising the allocation of commercial liquefied petroleum gas (LPG) to 70% of pre-crisis levels, amid ongoing global supply disruptions linked to tensions in West Asia.
“We have increased commercial LPG allocation from 50% to 70% to support industries, especially labour-intensive sectors like steel, automobiles, textiles, chemicals, and plastics, which are vital for employment and exports.” Petroleum Secretary Neeraj Mittal said.
The decision follows earlier supply cuts triggered by the fallout of the US-Israel strikes on Iran, which led to the temporary closure of the Strait of Hormuz—a key route for India’s crude and LPG imports from the Middle East.
According to the officials, industries that rely on LPG for specialised processes, particularly where natural gas cannot be used as a substitute, will be given priority in the additional allocation. States have also been urged to ensure compliance with existing conditions, including registration with oil marketing companies and efforts to shift toward piped natural gas where feasible.
“This step underscores India’s energy resilience. Household LPG, petrol, and diesel supplies remain secure, while industries now have the relief, they need to sustain jobs and exports.” Petroleum Minister Hardeep Singh Puri said.
Industry bodies have welcomed the increase, noting that improved fuel availability will help stabilize production cycles, protect jobs and support export commitments that were under strain due to earlier restrictions.
The total commercial LPG allocation now stands at 70%, including a 10% reform-linked component aimed at encouraging states to adopt energy transition measures. Officials said the government will continue to monitor the situation closely and make further adjustments if required.