Ministry of Petroleum and Natural Gas has announced a further increase in the supply of liquefied petroleum gas (LPG) for commercial users, raising allocations by 20% with a focus on labour-intensive industries.
The decision, communicated on 27 March, takes total commercial LPG allocation to 70% of pre-crisis levels. The move builds on an earlier restoration of 40%, along with an additional 10% allocation offered to states undertaking reforms to expand piped natural gas (PNG) infrastructure.
Oil Secretary Neeraj Mittal said the increase aims to support sectors such as steel, automobiles, textiles, dyes, chemicals and plastics, which rely heavily on LPG for production processes.
The additional supply will be directed primarily towards industries where LPG is essential for specialised heating requirements and cannot easily be substituted by natural gas.
Under the revised framework, companies seeking access to the increased allocation are required to register with oil marketing companies and apply for PNG connections through city gas distribution networks. However, exemptions have been granted to sectors where LPG use is integral and non-replaceable.
Oil Minister Hardeep Singh Puri said the policy is intended to ease supply constraints while ensuring that priority is given to industries where alternatives are limited.
He added that the government continues to closely monitor global energy markets and supply chains amid ongoing uncertainty.
The latest increase reflects a calibrated approach by the government to balance industrial demand with supply availability, while encouraging a gradual transition towards cleaner energy sources such as PNG.
Officials say the measure is expected to support production continuity across key sectors and help stabilise supply chains affected by earlier disruptions.
