REGULATORY · MARKET STRUCTURE · COMPETITIVE · INDIA
Centre raises industrial LPG allocation
Change
The Centre increased commercial LPG allocation for industry by 20%.
Why it matters
The Centre raised commercial LPG allocation for industry by 20%, prioritizing steel, automobile, textile, dye, chemicals and plastics and process industries requiring specialised heating. This eases LPG access for those prioritized manufacturers but keeps rationing and limited supply for non-priority commercial users. Process industries that cannot substitute natural gas remain required to rely on allocated LPG.
Implications
- · Prioritized manufacturers will face reduced immediate production disruptions from LPG shortages.
- · State governments must enforce the new allocation priorities and manage remaining commercial supply constraints.
Who is affected
- · Manufacturing firms (steel, automobile, textile, dye, chemicals, plastics)
- · Commercial LPG distributors and suppliers
- · State energy and regulatory authorities
Source
Topics
Regulatory & Compliance Policy & Regulation Business & Markets Supply Chain & Logistics Manufacturing