Bhubaneswar: The Government of India has announced an increase in the allocation of non-domestic liquefied petroleum gas (LPG) to support industrial operations across the country.
In a letter issued by Secretary, Ministry of Petroleum and Natural Gas on 27 March, 2026, the Government proposed an additional 20 percent allocation, which will bring the total commercial LPG supply to 70 percent of pre-crisis levels.
This new measure follows previous allotments that provided states with 40 percent of their original quota, plus an additional 10 percent linked to the implementation of specific energy reforms.
Dr. Neeraj Mittal, Secretary to the Ministry, noted that several states have already successfully accessed the reform-based quota by promoting Piped Natural Gas (PNG).
The additional supply is specifically intended for labor-intensive industries. Priority will be given to sectors such as steel, automobile, textile, dye, chemicals, and plastics. Within these groups, the ministry is prioritizing process industries that require LPG for specialized heating tasks where natural gas cannot be used as a substitute.
To qualify for this increased allocation, industrial entities must generally remain registered with Oil Marketing Companies and apply for PNG connections through City Gas Distribution entities. However, the ministry has waived the requirement to apply for natural gas for those specific industries where LPG is essential and cannot be replaced by gas.
Government officials have urged all states and union territories to immediately avail of the 10 percent reform-based allocation if they have not already done so. This move is expected to provide significant relief to the industrial sector and help stabilize production chains that rely heavily on fuel for specialized processing.