Centre introduces new LPG allocation formula 'Middle East tensions'

Amid rising tensions in the Middle East, the Indian government on Wednesday introduced a new formula for LPG allocation aimed at supporting critical sectors such as pharmaceuticals, food processing, and agriculture.

According to the Ministry of Petroleum and Natural Gas, the revised policy will ensure bulk LPG supply to a wide range of industries, including pharma, food, polymers, agriculture, packaging, paints, steel, ceramics, glass, and aerosols.

These



sectors are considered essential for the country’s economic stability and supply chains.

Under the new formula, industries will receive up to 70 per cent of their LPG consumption levels recorded before March 2026.

However, the overall allocation has been capped at 0.2 thousand metric tonnes per day for the entire sector.

The government has clarified that priority will be given to factories where LPG cannot be replaced by natural gas.