India's oil ministry raises LPG allocation for industry by 20%
Procurement teams at priority plants must accept LPG under a 20% allocation boost
Change
India's oil ministry raised commercial LPG allocation for industry by 20%, directing state governments to prioritise supplies to steel, automobile, textile, dye, chemicals and plastics.
Why it matters
Eligibility for the increased allocation is limited to process industries that require specialised heating and cannot substitute LPG with natural gas. Commercial users outside the named priority categories remain subject to earlier allocation limits while the ministry phases restorations.
Implications
- — State petroleum distribution authorities must apply the oil ministry's 20% commercial LPG allocation increase immediately and route deliveries according to the named priority list — failure to apply it will withhold the additional volumes from those priority sectors.
- — Procurement teams at steel, automobile, textile, dye, chemical and plastics plants whose processes cannot substitute natural gas must obtain priority-allocation confirmation from state distribution authorities now — without confirmed priority allocation they face continued LPG shortfalls that could interrupt specialised heating operations.
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Source
View on Economic Times