The Government of India has increased the allocation of commercial LPG cylinders to states from 50% to 70% of pre-crisis levels, aiming to support critical industries amid ongoing global energy disruptions linked to tensions involving Iran.
The move is intended to ensure continuity in industrial operations and maintain supply chains as international oil and gas markets face volatility due to disruptions in the strategically important Strait of Hormuz.
Focus on Labour-Intensive and Core Industries
According to a directive issued by Oil Secretary Neeraj Mittal, the additional LPG allocation will prioritise labour-intensive sectors such as steel, automobiles, textiles, chemicals, plastics, and dyes.
These industries play a crucial role in supporting broader economic activity and employment, making uninterrupted energy supply essential.
Gradual Increase to Stabilise Supply Chains
The latest decision adds 20% more allocation to the existing 50% quota, bringing the total supply to 70% of pre-crisis levels. The government had earlier increased supply to 50% to address emerging shortages.
Authorities have also directed states to prioritise sectors where piped natural gas (PNG) is not a viable alternative, ensuring equitable distribution of resources.
Support for Food and Public Services
In addition to industrial sectors, the government has asked states to prioritise LPG supply for essential services such as restaurants, hotels, food processing units, dairy operations, and subsidised community kitchens run by local bodies.
This step aims to safeguard food supply chains and public welfare services during the ongoing global uncertainty.
Government Assures Energy Security
Union Minister Hardeep Singh Puri stated that India continues to maintain energy security, availability, and affordability despite global challenges.
He highlighted that proactive measures by the government, under the leadership of Prime Minister Narendra Modi, are helping cushion the domestic economy from international shocks.
Measures to Prevent Supply Misuse
To ensure transparency and prevent diversion, all industrial and commercial LPG consumers must register with oil marketing companies (OMCs) to access the allocated supply.
The government emphasized that these steps are part of a coordinated effort to maintain stability and support economic resilience during a period of global uncertainty.
