The Union Ministry of Petroleum and Natural Gas has has announced a significant relaxation in fuel supply norms. Industrial units can now access up to 70 per cent of their pre-March wholesale non-domestic LPG requirements. This directive targets a diverse spectrum of essential sectors, ensuring that high-stakes industries, including pharmaceuticals, steel, food processing, and polymers, have the fuel security needed to maintain consistent output. This new provision is governed by a total sectoral ceiling of 200 tonnes per day.

Increased Allocation For Fertiliser Units

The Ministry of Petroleum and Natural Gas has also boosted the natural gas quota for the fertiliser industry. The allocation has been raised from 90 per cent to 95 per cent, a step expected to bolster production across several critical industrial segments.

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Eligible Industrial Sectors

The relief measures apply to a broad range of industries that are vital to the economy. These include:

- Pharmaceuticals and Food Processing

- Agriculture and Polymers

- Packaging, Paints, and Glass

- Steel, Metals, and Foundries

- Uranium, Heavy Water, and Ceramics

- Forging Units and Aerosol Manufacturers

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Priorities And Supply Conditions

Petroleum Secretary Neeraj Mittal informed state and union territory authorities that priority will be given to units with specific technical needs that cannot be satisfied by natural gas. To avail of this supply, companies must register with Oil Marketing Companies (OMCs) and apply for Piped Natural Gas (PNG) connections. LPG will only be permitted for specialized processes where natural gas is not a viable alternative.

Context Of The Decision

The government had previously restricted commercial LPG supply to just 20 per cent due to supply chain disruptions caused by ongoing conflicts in West Asia. This latest policy shift aims to provide much-needed breathing room for the industrial sector and ensure that essential manufacturing activities remain uninterrupted.