New LPG Allocation Formula Announced Amid Middle East Tensions

by

Arpit Soni

New LPG Allocation Formula Announced Amid Middle East Tensions

New Delhi, April 8: The central government has introduced a new formula for LPG allocation. This initiative aims to provide relief to crucial sectors such as pharmaceuticals, food, and agriculture.

According to the Ministry of Petroleum and Natural Gas, sectors including pharmaceuticals, food, polymers, agriculture, packaging, paints, uranium, heavy water, steel, seeds, metals, ceramics, foundries, forging, glass, and aerosols will now receive bulk LPG.

These industries will be allocated 70 percent of their LPG consumption prior to March 2026, with a total limit of 0.2 TMT (thousand metric tons) per day for the entire sector.

The government stated that factories unable to substitute LPG with natural gas will receive LPG first. Additionally, industries must register with oil marketing companies (OMCs) and apply for piped natural gas (PNG) connections through city gas distribution companies.

However, the requirement for PNG applications will be waived where LPG is an essential part of the manufacturing process and cannot be replaced by gas.

The government has already allocated 70 percent of packed non-domestic LPG to states, with an additional 10 percent quota for those states implementing the designated PNG-related reforms.

The government has outlined three essential steps for states: first, to disseminate the Natural Gas and Petroleum Products Distribution Order 2026 to all relevant departments; second, to quickly take advantage of the 10 percent reform-linked LPG allocation; and third, to promptly notify the state policy related to compressed biogas.

Earlier on Tuesday, the Ministry of Petroleum and Natural Gas reported that approximately 780,000 five-kilogram free trade LPG cylinders have been sold since March 23. On Monday alone, over 106,000 five-kilogram cylinders were sold nationwide, compared to an average of 77,000 cylinders sold daily in February.

Public sector oil companies have also conducted around 1,300 awareness camps for five-kilogram cylinders over the past four days, resulting in the sale of more than 10,000 cylinders.

Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚

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