LPG allocation quota? Complete Process & Details
Petroleum Ministry Ups LPG Quota: 70% Supply Restored for Industries
In a significant boost for industrial operations across India, the Petroleum Ministry has decided to raise the state-wise allocation quota for non-domestic LPG cylinders. In a recent communication, Neeraj Mittal, Secretary in the Ministry of Petroleum, informed Chief Secretaries of all States and Union Territories about this policy update.
This move increases the commercial LPG allocation to 70% of the pre-crisis levels. Earlier, states were operating on a 50% allocation, which included a 40% base quota and an additional 10% linked to the achievement of specific reforms aimed at promoting Piped Natural Gas (PNG).
Priority Sectors for Enhanced LPG Allocation
The additional 20% allocation is strategically directed toward labor-intensive sectors and those providing crucial support to other essential industries. This targeted approach is expected to provide significant relief to industrial operations nationally.
The priority industries for this enhanced LPG allocation quota? include:
- Steel
- Automobile
- Textile
- Dye
- Chemicals
- Plastics
Furthermore, priority within these sectors will be given to process industries or those requiring LPG for specialized heating purposes that cannot be substituted by Natural Gas. Entities must fulfill conditions regarding registration with Oil Marketing Companies (OMCs) and application for PNG to City Gas Distribution (CGD) entities to receive this additional supply, though certain process-specific requirements may be waived if substitution by Natural Gas is not feasible.
Urging States to Implement Reforms
Secretary Mittal also strongly urged all states and union territories to immediately avail of the 10% reform-based allocation if they have not already done so. He emphasized that utilizing the full allocation will ensure the commercial/industrial LPG supply rises to the complete 70% level, thereby supporting sustained industrial activity.
This policy adjustment reflects the government’s efforts to balance industrial energy needs with the ongoing push towards Natural Gas infrastructure development where possible.
LPG Allocation Quota FAQs
What is the current non-domestic LPG quota?
The central government has raised the total commercial LPG allocation to 70% of the pre-crisis level of packed non-domestic LPG, assuming states implement required reforms.
Which industries benefit from the quota increase?
Labor-intensive sectors like steel, automobile, textile, dye, chemicals, and plastics are prioritized, along with industries requiring specialized heating that natural gas cannot substitute.
