The Union government has increased the allocation of commercial LPG cylinders to states from 50 per cent to 70 per cent. The government says this was done in light of the ongoing war between the United States, Israel and Iran to meet the requirements of the steel, automobile and labor-intensive industries.
Oil Minister Neeraj Mittal, in a letter to senior state ministers, directed that additional supplies to labour-intensive industries should be prioritized. These industries include steel, automobiles, textiles, dyes, chemicals and plastics, which support other essential sectors.
According to the letter, the Oil Minister allocated an additional 20 percent in addition to the current quota of 50 percent. “This will raise the total commercial LPG allocation to 70 percent of the pre-crisis level for non-domestic bottled LPG,” the letter said.
This decision comes as conflict in West Asia and the Middle East continues to disrupt global oil and gas supplies amid unrest in the Strait of Hormuz, a major oil shipping corridor.
Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas, also spoke to X and announced the increase in allocations. While many countries have adopted stringent fuel conservation measures, Prime Minister Narendra Modi still “remains an oasis of energy security, availability and affordability,” Puri wrote.
He also informed that priority will be given to those industries where piped gas is not an alternative.
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Last week, the Center announced an increase in gas allocations to the states to 50 percent. In an official letter to all state ministers and chief ministers of UT, Petroleum Minister Neeraj Mittal said that the enhanced allocation is aimed at supporting key sectors, especially those related to food supply and public welfare.
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The letter also directed the states to give priority to restaurants, hotels, industrial canteens, food processing/dairies and subsidized canteens/outlets run by state governments or local food bodies.
The previous message also indicated that measures would be implemented to prevent diversion of supplies. It said all industrial and commercial LPG consumers must register with oil marketing companies to be eligible for allocation under the 50 per cent offer.
