Govt expands commercial LPG allocation to bulk consumers

New Delhi: The Centre on Wednesday expanded the allocation framework for bulk non-domestic (commercial) LPG by bringing a wider range of industrial sectors under its ambit.

Eligible units can now receive up to 70 per cent of their pre-West Asia war consumption.

The eligible industries include polymer, agriculture, packaging, paints, steel, metal, glass, pharma, food, uranium, heavy water, ceramics, foundries, forging units, and aerosol manufacturers.

Recently, several industries urged the Centre to allocate commercial LPG to them to continue their production.

Union Ministry of Petroleum and Natural Gas Secretary Neeraj Mittal in his letter to states said that these units will receive up to 70 per cent of their pre-March 2026 bulk LPG consumption levels, subject to an overall sectoral cap of 0.2 TMT (200 tonne) per day.

However, the allocation comes with certain conditions, under which priority will be accorded to units that require LPG for specialised applications that cannot be substituted with natural gas.

The Centre took this decision to 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.

States have been asked to operationalise the allocation and ensure compliance with the overall sectoral limits.

"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)," Mittal wrote to state governments.