India Revises LPG Allocations Amid West Asia Conflict

The Indian government has revised its liquefied petroleum gas allocation policies to address supply disruptions caused by the ongoing conflict in West Asia, expanding access for industrial sectors and doubling daily quotas of small cylinders for migrant workers across the country.

The Ministry of Petroleum and Natural Gas announced the changes on April 8, directing states to allocate up to 70 percent of pre-conflict commercial LPG consumption levels to a wide range of industries, including pharmaceuticals, food processing, polymers, agriculture, packaging, paints, steel, metals, glass, ceramics, foundries, forging units, and aerosol manufacturers. This applies to bulk non-domestic supplies, subject to an overall daily cap of 200 tonnes for the industrial sector. Priority will go to units where LPG is essential for specialized processes that cannot be substituted with natural gas, the ministry stated in communications to state authorities.

The revisions come amid tightened LPG availability since the West Asia conflict erupted on February 28, when military actions involving Israel, the United States, and Iran began, leading Iran to restrict access through the Strait of Hormuz....