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India raises commercial LPG share to 70%

The Indian central government has increased the share of commercial LPG allocated to states to 70% of pre-crisis demand in order to meet the needs of the industrial sector. This increase prioritizes labor-intensive industries that support core sectors such as steel, automotive, and other essential industries.

India raises commercial LPG share to 70%

In a letter sent to state chief secretaries, Petroleum Secretary Neeraj Mittal stated that the additional supply will be used particularly in labor-intensive sectors such as steel, automotive, textile, paint, chemical, and plastics. Mittal said, “In addition to the existing 50% allocation, an additional 20% is being proposed; thus, the total commercial LPG allocation will reach 70% of the pre-crisis level.”

At the beginning of the month, the Ministry of Petroleum had allocated 40% of the pre-crisis commercial LPG quota to states through three separate directives. Subsequently, an additional 10% allocation was made contingent upon the implementation of specific reforms promoting PNG usage.

The additional 20% allocation will be prioritized particularly for process industries and sectors requiring specific heating that cannot be substituted with natural gas. Mittal emphasized that this step aims to support industrial production and sustain economic activities.

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