New Delhi, March 27 (NationPress) On Friday, the Central government raised the allocation of commercial LPG cylinders to 70 percent of the total required demand, up from 50 percent previously. This move is aimed at offering support to industrial and commercial users facing gas shortages due to disruptions in imports from the ongoing Iran war.

Labour-intensive sectors such as steel, automobiles, textiles, dyes, chemicals, and plastics will receive priority as they are essential for the smooth functioning of other vital industries.

Within these sectors, particular focus will be on process industries that require LPG for specialized heating applications that cannot be replaced by natural gas.

Alongside the existing 50 percent allocation, an additional 20 percent is now proposed, raising the total commercial LPG allocation to 70 percent of the pre-crisis level for non-domestic LPG, according to the government's directive.

However, to qualify for this extra 20 percent, all commercial and industrial LPG consumers must complete their registration with oil marketing companies and apply for PNG through their local city gas distribution entity.

The directive further states, "For industries mentioned in the first paragraph (steel, automobile, textile, dye, chemicals, and plastics), where LPG is utilized in processes and for specific needs that cannot be substituted by natural gas, this requirement will be waived."

The government has also urged all states to quickly utilize the 10 percent reform-based allocation, if they haven't already. "This will increase the allocation to commercial/industrial LPG to 70 percent (including 10 percent reform-based), facilitating relief for industrial operations statewide," the directive explained.

The earlier additional 20 percent allocation, announced on March 21, prioritized sectors such as restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidized canteens operated by state governments or local bodies for food, community kitchens, and 5 kg (free trade LPG) FTL for migrant workers.

As per the latest data from the petroleum ministry, over 37,000 – 5kg FTL cylinders have been sold to migrant laborers as of March 25.

Distribution of these LPG cylinders will be handled by state governments and district authorities, who will prioritize sectors and consumers based on their own assessments.

Meanwhile, Iran has signaled its willingness to allow more Indian vessels carrying LPG to pass through the Strait of Hormuz. This development follows discussions between the Indian government and Iranian authorities regarding the matter.