The government on Friday raised the cap on commercial LPG supplies from 50% to 70% of pre-crisis levels, prioritizing labour-intensive industries including steel, automobiles, textiles, dyes, chemicals and plastics. Track updates on the US-Iran war
Oil Minister Neeraj Mittal informed the decision in a letter to senior state ministers. Mittal said that among the new priority industries, “priority will be given to manufacturing industries or those that require LPG for specialized heating purposes that cannot be replaced by natural gas.”
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The 70% cap represents the latest step in the gradual restoration of commercial supplies that began at 20% of pre-crisis levels. The government then raised it to 40%, then added another 10% as an incentive for states that implemented reforms to boost pipelined natural gas deliveries – on the rationale that Papua New Guinea’s expansion reduces pressure on cylinder supplies. “I am pleased to announce that several states have implemented some or all of the reforms and have benefited from the additional quota of up to 10%,” Mittal said.
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On March 21, another 20% was released with priority for food sector consumers: restaurants, dhaba, hotels, industrial canteens, food processing units, dairy operations, subsidized canteens, community kitchens, and 5 kg cylinders for migrant workers.
The new 20 points bring the total to 70%. “In addition to the current allocation of 50% above, an additional 20% allocation is now proposed, which will take the total commercial LPG allocation to 70% of the pre-crisis level of non-domestic bottled LPG,” Mittal said in the letter.
The Center allocates each state’s share of the scarce LPG only after 100% of local household requirements are met. The gradual recovery process indicates that domestic and import supplies have improved enough to allow gradual easing for commercial users despite the ongoing disruption caused by conflict in West Asia.
In a separate update on the fuel situation, Joint Secretary Sujata Sharma said that while LPG supplies remain affected by the geopolitical situation, “no droughts have been reported at LPG distributors.” She said that local cylinder deliveries are continuing normally.
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Petroleum Minister Hardeep Singh Puri sought to draw a comparison with his global counterparts, noting that many countries have resorted to individual rationing, four-day work weeks, closing schools and offices, and increasing fuel prices by 20% to 30%. “Under Prime Minister Narendramadhi, India remains an oasis” of energy security, availability and affordability, he said in a post on X.
Finance Minister Nirmala Sitharaman separately responded to opposition politicians who raised the possibility of shortages and lockdown. She said: “I am surprised that some leaders are saying that there will be a lockdown and there will be a fuel shortage. This is baseless. Such statements from people in political spheres are worrying.” She added that there would be “no lockdown like we saw during Covid”.
