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India lifts LPG allocation to 70% to support priority industries, including steel

30 Mar 2026 15:18 reported by Julian Lu

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The government of India has partially eased restrictions on liquefied petroleum gas (LPG) supplies, prioritizing key sectors including steel. 

The Ministry of Petroleum and Natural Gas announced that state allocations will be increased to 70% of pre-crisis requirements, up from the earlier 50% level imposed after disruptions linked to Middle East tensions. The move aims to support industrial recovery and stabilize operations in energy-dependent sectors. Priority access will be granted to industries such as steel, automotive, textiles, chemicals, and plastics. 

Authorities emphasized that preference will be given to processes requiring LPG for specialized heating where substitution with natural gas is not feasible. The policy adjustment is expected to ease fuel constraints for manufacturers and improve production continuity.

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