India caps bulk non-domestic LPG at 0.2 TMT/day and extends 70% allocation to more industrial sectors
Industrial procurement teams face capped bulk LPG supplies and must revise sourcing
Change
India's Petroleum Ministry capped bulk non-domestic liquefied petroleum gas (LPG) at 0.2 TMT per day and extended allocations equal to 70% of assessed pre‑March‑2026 consumption to additional industrial sectors, including pharmaceuticals and agriculture.
Why it matters
The allocation now covers a wider set of sectors (pharma, agriculture, uranium, metal, ceramic, foundry, aerosol), increasing competition for the limited bulk LPG pool. Operators cannot assume access to volumes above the 70% assessed entitlement and will need immediate fuel-substitution, rationing, or production adjustments to cover shortfalls.
Implications
- — Procurement teams at industrial plants that rely on bulk LPG — must secure alternative fuel contracts or additional LPG allocations immediately — failure to obtain cover risks production cuts for volumes above the new 70% allocation.
- — Plant operations managers at affected industrial units — must replan production schedules now to align with capped LPG availability — uncovered process demand above the cap will face enforced curtailment.
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Source
The Hindu
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