Centre raises commercial LPG allocation to 70% and prioritises key industries
The Facts
- The central government increased commercial LPG allocations to states and Union Territories by 20%, taking total supply to 70% of pre-crisis or pre-war levels.
- The additional commercial LPG supply is being prioritised for labour-intensive industries including steel, automobiles, textiles, dyes, chemicals and plastics.
- Officials said priority within those sectors should go to process industries or users that need LPG for specialised heating and cannot substitute natural gas.
- The allocation change was communicated by Petroleum/Oil Secretary Neeraj Mittal in letters or orders sent to state chief secretaries.
- The policy change was presented as a response to industrial supply disruptions linked to the West Asia conflict and broader global energy disruptions.
- Some reports say states were previously receiving 50% of pre-crisis commercial LPG demand before the new 20% increase.
Context
Which industries are expected to benefit first from the extra LPG allocation?
Reports say the extra supply will go first to steel, automobiles, textiles, dyes, chemicals and plastics, with process industries and users needing LPG for specialised heating given added priority Business Standard,Hindustan Times,Indian Express,New Indian Express.
Why did the government raise the allocation now?
The sources say the increase is meant to relieve industrial supply pressure after disruptions to LPG and LNG supplies tied to the West Asia conflict and wider global energy market strain Daily News and Anal…,News18,Hindu,ETAuto.com,New Indian Express.
Who issued the instruction to states?
Multiple reports say Petroleum/Oil Secretary Neeraj Mittal sent the revised allocation instructions to state and Union Territory chief secretaries Telegraph,Business Standard,Daily News and Anal…,NDTV,Indian Express,Times of India.
The receipts — all 64 sources
Wire services (1)
Independent coverage (50)
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