New Delhi

Neeraj Mittal, Secretary in the Ministry of Petroleum, has written to Chief Secretaries of all states and Union Territories outlining revised allocations for non-domestic LPG and urging faster implementation of reforms.

In the letter, Mittal noted that several states have already implemented measures related to the distribution of commercial LPG across sectors. Earlier, on March 16, states were allotted 40 per cent of their pre-crisis LPG quota, with an additional 10 per cent linked to reforms promoting Piped Natural Gas (PNG).

Now, the Centre has proposed a further 20 per cent allocation, which would increase the total supply of commercial LPG to 70 per cent of pre-crisis levels.

This additional allocation will prioritise labour-intensive industries such as steel, automobile, textiles, chemicals, dyes, and plastics—especially those that depend on LPG for specialised processes where natural gas cannot be used as a substitute.

However, to qualify for this extra supply, industries must comply with conditions laid down earlier, including registration with oil marketing companies and applying for PNG connections through city gas distribution networks. These requirements may be relaxed for sectors where LPG usage is essential and cannot be replaced by natural gas.

Mittal also encouraged states to promptly utilise the 10 per cent reform-linked allocation, stating that the combined measures would help ease pressure on industrial operations.

Meanwhile, the government has reduced excise duty on petrol to Rs 3 per litre and eliminated it on diesel, while imposing a windfall tax of Rs 21.5 per litre on diesel exports. The move comes in response to global energy disruptions linked to tensions in West Asia.

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The crisis has intensified following conflict involving the United States, Israel, and Iran, and the resulting blockade of the Strait of Hormuz—a key channel that carries a significant share of the world’s crude oil and gas supplies. Prior to the disruption, India sourced around 12–15 per cent of its oil imports through this route.