LPG Quotas Fixed for All! No More Arbitrary Usage by Industries; Discounts Available on PNG Connections

LPG Distribution: In light of the LPG shortages experienced over the past several days, the government has now taken a major decision. The government has decided to cap the distribution of LPG to industrial sectors.

LPG Shortage: A scarcity of LPG gas has persisted for several days, prompting the government to take significant action. Under this decision, industries operating within the states will now receive LPG within prescribed limits. To this end, the Ministry of Petroleum and Natural Gas has issued directives to the states to restrict the supply of gas intended for industrial use.

The government has taken this step with the objective of resolving issues related to LPG supply. The Ministry of Petroleum and Natural Gas has instructed states to reallocate 70% of non-domestic LPG supplies to other sectors, while simultaneously limiting supplies to industrial users. Furthermore, with a view toward implementing reforms, the government has launched an additional scheme: states that actively promote alternative fuels—such as PNG—will be granted an additional 10% allocation of LPG.

Industrial Supplies to be Limited

A primary objective behind issuing this directive is to curb industrial consumption. Several sectors—including pharmaceuticals, food processing, steel, glass, ceramics, packaging, and chemicals—will now receive only 70% of their bulk LPG consumption levels recorded prior to March 2026. Additionally, this supply has been capped at a rate of 0.2 metric tonnes per day, thereby effectively limiting the total quantity available to industries. This government decision is expected to have a particularly significant impact on industries that are entirely dependent on LPG.

Priority LPG Allocation for Specific Companies

Following this government decision, priority for LPG allocation will be given to factories or companies where the use of natural gas is not technically feasible. Concurrently, these companies will be required to register with OMCs (Oil Marketing Companies) and submit applications for PNG connections to the respective City Gas Distribution (CGD) companies. Following this decision, those states that promote PNG gas connections will benefit the most.