The Union government has increased the allocation of commercial liquefied petroleum gas to states to 70% of pre-crisis levels to support labour-intensive industries hit by supply disruptions.
The decision was announced by the Ministry of Petroleum and Natural Gas as the ongoing conflict in West Asia continues to impact fuel supplies, particularly through the Strait of Hormuz, a key route for India’s LPG imports.
Petroleum Secretary Neeraj Mittal informed chief secretaries of all states and union territories that the revised allocation includes the existing 50% supply along with an additional 20% now being provided.
Earlier, states had been allotted 40% of their pre-crisis LPG quota, with a further 10% linked to reforms promoting piped natural gas. Several states have already implemented these reforms and accessed the additional share.
India imports about 60% of its LPG consumption, with nearly 90% of those supplies routed through the Strait of Hormuz, making the country vulnerable to disruptions in the region.
The latest increase will prioritise labour-intensive sectors such as steel, automobile, textiles, dyes, chemicals, and plastics, particularly industries that rely on LPG for specialised heating and cannot easily switch to alternative fuels.
The government has also asked states to ensure industries comply with registration norms and apply for piped natural gas connections where feasible. They have been urged to circulate the Natural Gas and Petroleum Products Distribution Order, 2026, and claim the remaining reform-linked allocations.
On March 8, the Centre had directed refineries and petrochemical complexes to maximise LPG output by diverting streams such as propane and butane to the LPG pool.