Government Expands Bulk Commercial LPG Allocation to Additional Sectors

The Ministry of Petroleum and Natural Gas has announced a decision to cap bulk non-domestic liquefied petroleum gas (LPG) allocation at 0.2 thousand metric tons (TMT) per day. This measure is aimed at regulating the distribution of LPG to various sectors while ensuring the efficient use of resources.

In a significant development, industries will now be permitted to consume up to 70% of their LPG usage levels recorded prior to March 2026. This adjustment is designed to provide companies with increased flexibility in their operations as they adapt to current market conditions and energy demands.

The Petroleum Ministry encourages industries to optimize their LPG consumption and explore alternative energy sources to mitigate dependency on non-domestic supply. The capping of allocations is part of broader efforts to manage energy resources effectively, ensuring the sustainable use of petroleum products across various sectors in India.

This decision comes in light of fluctuating global energy prices and an ongoing focus on promoting energy efficiency and sustainability within industry practices. Further details regarding the implementation and potential impacts of this policy are expected to be released by the Ministry in the coming weeks.