Centre raises non-domestic LPG allocation to 70 per cent

The Ministry of Petroleum has increased the allocation of nondomestic LPG to 70 per cent of precrisis levels offering relief to industries impacted by supply constraints amid the ongoing global energy disruption reported news agency ANIIn a communication to Chief Secretaries of all States and Union Territories Petroleum Secretary Neeraj Mittal outlined the revised allocation framework Earlier states were allotted 40 per cent of their precrisis quota on March 16 followed by an additional 10 per cent linked to reforms promoting Piped Natural Gas PNGWith the latest decision an additional 20 per cent allocation has been approved raising the total availability of commercial LPG to 70 per cent of precrisis levels reported ANIPriority for LabourIntensive and Core IndustriesThe Ministry clarified that the additional allocation will prioritise key labourintensive industries including steel automobile textile dye chemicals and plastics sectors These industries play a critical role in supporting broader economic activity and employment reported ANISpecial emphasis will be placed on processbased industries that rely on LPG for specialised heating requirements that cannot be replaced by natural gas In such cases exemptions from certain eligibility conditions will be granted to ensure uninterrupted operations reported ANIConditions Linked to Reforms and PNG AdoptionThe additional 20 per cent allocation will be subject to specific conditions Industries must be registered with oil marketing companies and should have applied for PNG connections through city gas distribution entities reported ANIHowever the Ministry has clarified that industries where LPG is indispensable for technical processes will be exempted from these requirements States have also been urged to promptly utilise the earlier 10 per cent reformbased allocation if they have not already done so reported ANIOfficials stated that the enhanced allocation is expected to stabilise industrial operations and ease supplyside pressures in several sectorsMove Aimed at Mitigating Impact of Global Energy CrisisThe decision comes amid a broader global energy crisis triggered by geopolitical tensions particularly the conflict involving the United States Israel and Iran Disruptions in supply routes especially through the Strait of Hormuz have significantly impacted global energy marketsA substantial portion of the worldrsquos crude oil and gas supply passes through this strategic corridor making it a critical factor in global price volatility India which relies heavily on imports has also felt the impact of these disruptionsExcise Duty Cuts Complement Supply MeasuresIn a parallel move to protect consumers from rising fuel costs the government has also reduced excise duties on petrol and diesel Petrol duty has been brought down to Rs 3 per litre while diesel has been fully exempted reported ANIAdditionally a windfall tax has been imposed on diesel exports at Rs 215 per litre These measures are aimed at balancing domestic supply controlling prices and ensuring energy securityThe combined steps enhancing LPG allocation and reducing fuel taxesmdashreflect the governmentrsquos broader strategy to cushion both industries and consumers from the ongoing global energy volatility while maintaining supply stability across sectorsWith inputs from ANI