Govt Caps Industrial LPG, Allocates 70% to States, Urges PNG Shift
Govt Caps Industrial LPG, Allocates 70% to States, Urges PNG Shift
India tightens LPG supply for industries, directing 70% of non-domestic LPG to states and tying more to PNG adoption.
In a move aimed at easing pressure on fuel supply, the Ministry of Petroleum and Natural Gas directed states to allocate 70% of packed non-domestic LPG to various sectors while capping industrial supplies to protect essential uses.
Under the plan, industrial sectors such as pharma, food processing, steel, glass, ceramics, packaging, and chemicals will be restricted to 70% of their pre-March 2026 bulk LPG consumption levels, with an overall sectoral cap of 0.2 TMT per day.
The policy also links an additional reform-related incentive, offering states that actively promote substitutes like piped natural gas (PNG) an extra 10% LPG allocation.
Officials emphasise the priority on essential, non-substitutable LPG uses, while inviting industries that can switch to PNG or other fuels to transition. The aim is to keep critical operations running while reducing wasteful consumption.
This approach reflects ongoing efforts to balance domestic energy security with industrial activity as supply tightness continues.
Industries facing tighter access may explore substitutes, alter production schedules, or reassess fuel mixes, highlighting a potential impact on costs and planning across sectors.
The government has signaled that the reform path is gradual, with further tweaks possible as the situation evolves.
