Daijiworld Media Network - New Delhi

New Delhi, Mar 27: In a move to ease pressure on commercial users, the Ministry of Petroleum and Natural Gas on Friday announced a further 20% increase in allocation of liquefied petroleum gas (LPG) to States and Union Territories, taking the total allocation to 70% of pre-crisis levels.

The additional allocation is aimed at prioritising sectors where piped natural gas (PNG) cannot serve as a viable alternative. These include labour-intensive and essential industries such as steel, automobile, textile, dye, chemicals and plastics.

The ministry, in its communication, stressed that priority would be given to process industries or those requiring LPG for specialised heating purposes that cannot be substituted by natural gas.

The decision follows concerns raised by the Ministry of Steel, which had sought intervention to ensure that industrial operations are not impacted due to LPG shortages.

Officials said the latest increase also includes the 10% additional allocation announced earlier this month, which was linked to efforts by States and UTs to promote the adoption of piped gas.

The ministry reiterated that entities seeking the additional 20% allocation must apply with city gas distributors to transition to piped gas. However, exemptions have been provided for industries where LPG is integral to production processes or required for specialised purposes that cannot be replaced by natural gas.

Meanwhile, the government dismissed claims that the push for PNG is due to LPG shortages, asserting that supplies remain secure. It clarified that PNG is being promoted as a more affordable and convenient fuel option for consumers.