March 27, New Delhi — In a major relief measure for industries, the Ministry of Petroleum and Natural Gas has increased the allocation of non-domestic commercial LPG to 70% of pre-crisis levels.
In a letter sent today to all State and Union Territory Chief Secretaries, Dr. Neeraj Mittal, Secretary, Ministry of Petroleum & Natural Gas, announced an additional 20% quota. This comes on top of the existing 50% allocation, which included a 40% base quota and another 10% linked to reforms promoting Piped Natural Gas. Several states have already carried out the required reforms and availed the extra 10%.
The fresh 20% allocation will prioritize labor-intensive sectors such as steel, automobile, textile, dye, chemicals, and plastics that support other essential industries. Special preference will be given to process industries and units that use LPG for specialized heating purposes that cannot be easily replaced by Natural Gas. To receive the additional quota, industries must register with Oil Marketing Companies and apply for PNG connections to City Gas Distribution entities.
However, these conditions will be waived for process industries where LPG is essential and cannot be substituted by Natural Gas. The government has also urged states that have not yet claimed the earlier 10% reform-based quota to do so immediately. Dr. Mittal has requested all states to communicate the Natural Gas and Petroleum Products Distribution (Pipelines and Other Facilities) Order 2026 to concerned departments for smooth implementation. With this decision, commercial and industrial LPG supply will now stand at 70% of pre-crisis levels, providing significant relief to key manufacturing sectors across the country.