Monday, July 20, 2026

India opens commercial LPG supply to select industries under sectoral cap; states asked to act

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The government has allowed the supply of commercial LPG to a wider set of industrial sectors, subject to a defined sectoral cap, and has asked states to operationalise the decision.In a communication to states, the Petroleum Secretary said that industries including polymer, agriculture, packaging, paints, steel, metal and glass will be eligible to receive up to 70% of their pre-March 2026 bulk non-domestic LPG consumption.

The allocation, however, will be capped at an overall sectoral limit of 0.2 TMT per day.

Also read: India doubles supply of 5-kg LPG cylinders for migrant workers, writes to statesThe directive further expands eligibility to sectors such as pharma, food, polymer, agriculture, packaging, paint, uranium, heavy water, steel, seed, metal, ceramic, foundry, forging, glass and aerosol, among others.These units will also be entitled to receive up to 70% of their pre-March consumption levels, within the same overall cap.The Centre has indicated that priority in allocation should be given to industrial units where LPG is required for specialised processes and cannot be substituted by natural gas.First Published: Apr 8, 2026 1:16 PM IST

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