The Ministry of Petroleum & Natural Gas has capped bulk LPG allocation to key industrial sectors at 70% of their pre-March 2026 consumption, as part of a calibrated strategy to manage supply disruptions while accelerating fuel transition. The directive, issued by Secretary Dr. Neeraj Mittal, covers sectors such as pharma, food processing, polymers, agriculture, steel, ceramics, glass and more, with an overall ceiling of 0.2 TMT per day.
The move builds on earlier communications between March 16 and 27, with an additional 10% allocation linked to progress in Piped Natural Gas (PNG) reforms. The policy aims to ensure equitable LPG distribution while nudging industries towards cleaner alternatives. Notably, sectors where LPG is a critical and non-substitutable input—such as heavy water, uranium, and certain manufacturing processes—will receive priority and are exempt from mandatory PNG connectivity requirements.
The decision comes amid sharp global volatility triggered by the West Asia conflict, which has disrupted supply chains. India, which imports around 60% of its LPG—nearly 90% via the Strait of Hormuz—saw imports fall from 2.04 million tonnes in February to 1.12 million tonnes in March, a 45% drop.
Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri have underscored price stability, with the government absorbing rising costs through oil marketing companies. States have also been asked to fast-track PNG rollout and CBG policy implementation.
