Government has increased LPG allocation to 7
The government on Wednesday increased the allocation of liquefied petroleum gas (LPG) to industrial units in pharmaceutical, food, polymer, agriculture and several other sectors to 70 per cent. According to a communication from the Ministry of Petroleum and Natural Gas (MoPNG), the allocation will be limited to 200 tonnes per day for each field.
Neeraj Mittal, Secretary, MoPNG, in a letter to states said, “Industrial units in sectors like pharmaceutical, food, polymer, agriculture, packaging, paint, uranium, heavy water, steel, seed, metal, ceramic, foundry, forging, glass, aerosol, etc. will receive 70 per cent of the bulk non-domestic LPG consumption level of pre-March 2026 units, subject to the overall sectoral cap of 200 tonnes per day.” Is.”
Units will be required to register with state-run oil-marketing companies to be eligible for the additional allocation. Commercial users will also have to apply for Piped Natural Gas (PNG) with the city gas distribution company and take steps to switch to PNG.
“However, if the above mentioned industries use LPG as an integral input in the manufacturing process or for special purposes which cannot be replaced by natural gas, the requirement relating to application for PNG will be waived,” the letter said.
In a media briefing on the West Asia crisis, the government also said it has increased the total natural gas allocation for fertilizer plants by 5 per cent to about 95 per cent of the six-month average consumption of the units.
In a relief to the petrochemical (Petchem) sector, the government allowed 800 million tonnes per day of propane and butane to be diverted for petrochemical production.
To ensure affordability of coal, Coal India (CIL) has reduced the reserve price of coal under e-auction by 20 per cent and increased supply through both e-auction and state-nominated agency mechanism, officials said.
CIL also increased the frequency of e-auction, offering 32.53 million tonnes of coal in March 2026, of which 13.32 million tonnes was booked. The government said 30 e-auctions are planned for April 2026, with 25.8 million tonnes on offer, so far 3.2 million tonnes have been offered and 1.24 million tonnes have been booked.
