New Delhi: Amid a global energy crunch, the Union government has ordered an increase in the allocation of commercial LPG cylinders to states and Union Territories from 50% to 70%. Officials said the revised level restores supply to what it was before the West Asia conflict escalated.
The move comes as tensions continue following attacks on Iran since February 28 by the US and Israel, and Iran’s retaliatory actions. Iran has reportedly shut the Strait of Hormuz, a key route for about 20% of the world’s crude oil movement, triggering shortages of gas and crude oil across countries, including India.
With commercial LPG supplies constrained, hotels and restaurants in several cities, including Chennai, were forced to shut. During the initial phase of the shortage, states’ commercial cylinder supply was cut to 30% before being raised to 50%; it has now been increased by a further 20 percentage points to 70%.
In a letter to all states and Union Territories, Petroleum Secretary Neeraj Mittal said the additional allocation should be directed to labour-intensive sectors such as steel, automobile, textiles, dyeing, chemicals and plastics. He noted that the step would particularly help factories that depend on commercial LPG for heating needs and cannot shift to natural gas, and urged states to immediately utilise the 10% allocation provided under the reform framework.
