Just hours before Prime Minister Narendra Modi’s high-profile virtual meeting with State Chief Ministers to review the West Asia energy crisis, the Central Government has announced a significant hike in LPG allocations. In a proactive move to support industries and businesses, the Ministry of Petroleum has increased the allocation of non-domestic (commercial) LPG from the existing 50% to 70% of pre-crisis levels.

The decision comes at a crucial time when global supply chains have been disrupted due to tensions in the Middle East. The additional 20% quota will specifically benefit labor-intensive sectors such as steel, automobiles, textiles, and chemicals. Priority will be given to those industries where LPG is essential for specialized heating processes and cannot be replaced by Piped Natural Gas (PNG).

Prime Minister Modi is scheduled to hold a video conference at 6:30 PM today to discuss national preparedness regarding energy security and essential commodities. While Chief Ministers of poll-bound states like West Bengal, Tamil Nadu, and Kerala will not attend due to the Model Code of Conduct (MCC), their Chief Secretaries will represent the states. The meeting is expected to focus on preventing hoarding and ensuring the judicious use of petroleum products.

The government has repeatedly assured that domestic LPG supplies for households remain unaffected and are being delivered at normal pre-war rates. By raising the commercial quota to 70%, the Centre aims to prevent an industrial slowdown and stabilize the market sentiment. This strategic intervention by New Delhi is seen as a major relief for the hospitality and manufacturing sectors, which were facing the brunt of the supply crunch.