Govt raises commercial LPG supply cap to 70%, industries get priority

THe authorities on fri raised the crest on commercial message liquified petroleum gas (LPG) supplies from 50% to 70% of pre-crisis levels, extending priority access to labour-intensive industries including steel, automobiles, textiles, dyes, chemicals, and plastics. Track Iran US war updatesPetroleum secretary Neeraj Mittal communicated the decision in a letter to chief secretaries of states. Within the newly prioritised industries, “priority shall be given to process industries or those requiring LPG for specialised heating purposes that cannot be substituted by Natural Gas,” Mittal said.Also read: ₹10 per litre; slaps levies on exports">Govt cuts excise on petrol, diesel by ₹10 per litre; slaps levies on exportsThe 70% cap represents the latest step in a graduated restoration of commercial supplies that began at 20% of pre-crisis levels. The government subsequently raised it to 40%, then added a further 10% as an incentive for states that implemented reforms to promote piped natural gas (PNG) connections — on the logic that expanding PNG reduces pressure on cylinder supplies. “I am happy to share that several states have carried out some or all the reforms and have availed the additional quota of up to 10%,” Mittal said.Also Read | LPG cylinders delivered only on paper, say customers queued outside agenciesOn March 21, a further 20% was released with priority to food-sector consumers: restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations, subsidised canteens, community kitchens, and 5 kg cylinders for migrant labourers.The new 20 percentage points bring the total to 70%. “In addition to the existing 50% allocation above, an additional 20% is now proposed, that would bring the total commercial LPG allocation to 70% of the pre-crisis level of the packed non-domestic LPG,” Mittal said in the letter.The Centre allocates each state’s share of scarce LPG only after meeting 100% of domestic household requirements. The stepped restoration signals that domestic and import supplies have improved enough to allow incremental easing for commercial users despite the continuing disruption caused by the West Asia conflict.Joint secretary Sujata Sharma, giving a separate update on the fuel situation, said that while LPG supplies remain affected by the geopolitical situation, “no dry-outs have been reported at LPG distributorships.” Domestic cylinder deliveries are continuing normally, she said.Also Read | ‘60 days of oil stocks, 800,000 tonnes LPG’: Govt releases stock details amid ‘emergency’ fearsPetroleum minister Hardeep Singh Puri sought to draw a contrast with global peers, noting that several countries had resorted to odd-even rationing, four-day work weeks, school and office closures, and fuel price increases of 20-30%. India, he said in a post on X, “under PM @narendramodi Ji remains an oasis” of energy security, availability and affordability.Finance minister Nirmala Sitharaman separately pushed back against opposition politicians who have raised the prospect of shortages and a lockdown. “I am surprised that some leaders are saying there will be a lockdown and there will be shortages of fuel. These are baseless. Such remarks coming from those in political domains are worrisome,” she said. She added there would be “no lockdown such as we saw during Covid.”