India Increases LPG and Natural Gas Allocations for Key Industries Amid Easing West Asia Conflict
Govt raises LPG, natural gas allocation for key industries
Mint
Image: Mint
The Indian government has raised allocations of liquefied petroleum gas (LPG) and natural gas for critical industries to 70% and 95% of their respective pre-March 2026 average consumption levels. This decision comes as tensions in West Asia ease, allowing for a gradual restoration of fuel supplies to various sectors, including pharmaceuticals and agriculture.
- 01LPG allocation for key industries increased to 70% of pre-March 2026 levels.
- 02Natural gas allocation for the fertilizer sector raised to 95% of the last six months' average.
- 03The decision follows a two-week ceasefire in West Asia, easing supply constraints.
- 04Commercial LPG sales have reached over 93,085 tonnes since March 14.
- 05Refineries directed to supply 800,000 tonnes per day of critical hydrocarbons to essential sectors.
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The Indian government has announced a significant increase in the allocation of liquefied petroleum gas (LPG) and natural gas for key industries, restoring supplies amid an easing of tensions in West Asia. According to a letter from the Ministry of Petroleum and Natural Gas, LPG allocations for critical sectors such as pharmaceuticals, food, and agriculture have been raised to 70% of their pre-March 2026 average consumption levels. Additionally, the natural gas allocation for the fertilizer industry has been increased to 95% of the last six months' average consumption. This decision comes after the government had previously prioritized LPG supplies for household cooking due to supply disruptions caused by geopolitical conflicts in the region. Since March 14, approximately 93,085 tonnes of commercial LPG, equivalent to over 4.9 million 19-kg cylinders, have been sold. The government is also directing refineries to supply a combined 800,000 tonnes per day of propane, butane, and other essential molecules to critical sectors, responding to demands from the pharmaceutical industry for increased supplies to meet domestic needs.
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The increased allocations of LPG and natural gas are expected to enhance production capabilities in key industries, potentially leading to lower prices for essential goods and improved availability of pharmaceuticals and agricultural products.
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More about Ministry of Petroleum and Natural Gas

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The Economic Times • Apr 7, 2026
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