Centre Revises Bulk LPG Allocation Norms For Industrial Sectors

Industrial Sectors Included The revised norms now extend bulk non-domestic LPG allocation to industries such as pharma, food processing, polymers, agriculture, packaging, paints, steel, ceramics, glass, foundry, forging, and others. These units will receive up to 70 percent of their pre-March 2026 bulk LPG consumption levels, subject to an overall sectoral cap of 0.2 TMT per day. Key Conditions for Allocation The government has laid down specific conditions for availing the allocation. Priority will be given to units where LPG is required for specialised applications that cannot be substituted with natural gas. Industries must comply with earlier guidelines, including registration with Oil Marketing Companies (OMCs). Units are also required to apply for PNG connections with City Gas Distribution (CGD) entities. However, the requirement to apply for PNG will be waived for industries where LPG is an essential input in the manufacturing process or cannot be replaced by natural gas. Reform Push and Policy Directions Neeraj Mittal, Secretary, Ministry of Petroleum and Natural Gas, has urged States to disseminate the Natural Gas and Petroleum Products Distribution (Pipelines and Other Facilities) Order, 2026 to all relevant departments, expedite utilisation of the additional 10 per cent reform-linked LPG allocation and notify Compressed Biogas (CBG) state policies at the earliest. The move aims to ensure balanced energy access for industries while accelerating the transition towards cleaner fuels like PNG and CBG, in line with the government’s broader energy and sustainability goals. (KNN Bureau)