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Business

MoPNG ensures stable LPG supply for industries amid global disruptions

The Ministry of Petroleum and Natural Gas has introduced measures to secure bulk LPG supply for key industries, balancing immediate demand with long-term energy transition goals amid global supply disruptions and rising price volatility

TDJ News Service

09 Apr, 2026

New Delhi:The Ministry of Petroleum & Natural Gas (MoPNG) has issued an order to ensure the continued and stable availability of Liquefied Petroleum Gas (LPG) for industrial consumption amid evolving global supply conditions.

In a letter addressed to Secretaries of the Government of India, as well as Chief Secretaries of all States and Union Territories, Neeraj Mittal, Secretary, MoPNG, announced that industrial units across key sectors including pharmaceuticals, food processing, polymers, agriculture, packaging, paints, steel, metals, ceramics, glass, aerosols, foundries, forging, heavy water, uranium, and seeds will receive 70% of their pre-March 2026 bulk LPG consumption. This allocation is subject to an overall sectoral ceiling of 0.2 TMT per day.

The directive builds on earlier communications issued between March 16 and 27, with an additional 10% allocation linked to progress on Piped Natural Gas (PNG) reform milestones. This calibrated approach aims to balance immediate industrial needs while encouraging a gradual transition toward alternative fuel infrastructure.

MoPNG has also clarified that industries where LPG serves as a critical and non-substitutable input in manufacturing will be given priority in allocation. For such sectors, the requirement to apply for PNG connectivity has been waived, ensuring uninterrupted operations while maintaining compliance with policy guidelines. A clear distinction has been drawn between industries that use LPG as a fuel where substitution with PNG is feasible and those where LPG is integral to the production process.

Prime Minister Narendra Modi and Union Petroleum and Natural Gas Minister Hardeep Singh Puri have emphasized the importance of maintaining stable domestic LPG supplies despite volatility in global energy markets, particularly due to ongoing tensions in West Asia. To mitigate the impact of rising international prices, the government has opted to absorb increased costs through Oil Marketing Companies (OMCs) and enhanced domestic production, rather than passing the full burden onto consumers.
States and Union Territories have been advised to widely disseminate provisions under the Natural Gas and Petroleum Products Distribution (Pipelines and Other Facilities) Order, 2026, expedite implementation of Compressed Biogas (CBG) policies, and effectively utilize reform-linked LPG allocations.
India currently imports around 60% of its LPG requirements, with nearly 90% of these supplies transiting through the Strait of Hormuz. Recent disruptions led to a sharp decline in monthly imports from 2.04 million tonnes in February to 1.12 million tonnes in March, marking a 45% drop within just 30 days.

Tags : Liquefied Petroleum Gas, Piped Natural Gas, Ministry of Petroleum & Natural Gas, Consumption, Strait of Hormuz, Narendra Modi

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