Govt raises commercial LPG allocation to 70%, prioritises industries

The central government has increased commercial LPG allocations to states by 20 per cent, raising the quota to 70 per cent of pre-war demand to meet industrial requirements, including in sectors such as steel and automobiles.

 

The additional supply will be prioritised for labour-intensive industries such as steel, automobiles, textiles, dyes, chemicals, and plastics, which support other essential sectors, petroleum secretary Neeraj Mittal said in a letter to state chief secretaries.

 

“In addition to the existing 50 per cent allocation, an additional 20 per cent is now proposed, which would bring the total commercial LPG allocation to 70 per cent of the pre-crisis level of packed non-domestic LPG,” he said.

 

 

The oil ministry had allotted 40 per cent of the pre-crisis commercial LPG quota to states through three separate directives earlier this month. The ministry had allotted an additional 10 per cent LPG to states based on the achievement of certain reforms to promote PNG.

 

The additional 20 per cent allocation will be given to priority industries. “Among these, priority will be given to process industries or those requiring LPG for specialised heating purposes that cannot be substituted by natural gas,” Mittal said.