India caps bulk non-domestic LPG at 0.2 TMT/day, expands 70% allocation to sectors
Industrial plant procurement teams can draw up to 70% of pre‑March LPG bulk use
Change
India capped bulk non‑domestic LPG allocation at 0.2 thousand metric tonnes (TMT) per day and authorised industrial users in sectors including pharmaceuticals, agriculture, uranium, metals, ceramics, foundries and aerosol makers to draw up to 70% of their assessed pre‑March 2026 consumption.
Why it matters
Entitlement to bulk LPG is now fixed to assessed historical consumption, limiting firms' ability to source extra volumes during demand spikes. A national daily cap creates persistent competition for constrained bulk supply and increases the likelihood of routine delivery shortfalls for lower‑priority users.
Implications
- — Procurement teams at pharmaceutical, agricultural‑input, metal, ceramic, foundry and aerosol manufacturers — must immediately secure alternative fuel supplies or increase LPG inventory cover — otherwise they risk forced production curtailment if allocated volumes fall short of operating needs.
- — Plant operations and fuel‑management teams at new or recently expanded industrial facilities without documented pre‑March 2026 LPG usage — must immediately compile and certify their consumption history with state authorities — otherwise they risk exclusion from bulk allocations and consequent supply gaps.
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