Govt Boosts Commercial LPG Allocation to 70% Amid Global Energy Crisis
India's government has announced an immediate increase, raising commercial non-domestic (NDO) gas allocation from the previous crisis level of roughly 53.2 million tonnes per month by approximately twenty percent in March and April alone for industrial use across key sectors including steel automobiles textiles dyeing power generation petrochemicals pharmaceuticals cement paper pulp leather plastics rubber engineering goods food processing packaging chemicals fertilizers agro-processing construction mining agriculture water treatment energy trading logistics transportation warehousing...
Key Points
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1The Ministry of Petroleum & Natural Gas has increased commercial LPG allocations by an additional 20%, bringing total supply for industries like steel, automobiles, and textiles up from the previous pre-crisis level.
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2This new allocation brings non-domestic (commercial) LPG distribution to states at a combined rate of approximately or exactly as stated in reports: some sources say '70% with priority given' while others specify this is an increase TO 50 percent, taking total supply up from the previous pre-crisis level.
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3The move aims to support manufacturing and cut costs amid ongoing global energy crisis concerns linked to Middle East conflict.
Developments
The Ministry of Petroleum & Natural Gas has increased the commercial LPG supply by an additional 20%, bringing total allocations for states up from pre-crisis levels. Priority under this new scheme will be given to labour-intensive industries such as steel, automobiles, textiles, dyeing, chemicals, and plastics that require specialized heating not substitutable with natural gas or where PNG registration conditions are waived due to process needs.
The government has issued a new order allocating an additional 20% extra commercial LPG to states specifically for delivery to labour-intensive industries like steel, automobile manufacturing, and dyes. This brings the total monthly allocation from oil marketing companies up to 70%, subject to registration with city gas distribution firms or waiver of requirements if natural gas substitution is impossible due to specialized heating needs in process industries.