The Indian government announced a new LPG allocation formula on Wednesday in an effort to support important industries like pharmaceuticals, food processing, and agriculture in the face of escalating tensions in the Middle East.

The revised policy, according to the Ministry of Petroleum and Natural Gas, will guarantee the bulk delivery of LPG to a variety of industries, including pharmaceuticals, food, polymers, agriculture, packaging, paints, steel, ceramics, glass, and aerosols.

These industries are seen as vital to the nation’s economic stability and supply chains.

According to the new formula, industries will be able to receive up to 70% of their LPG consumption levels as measured before March 2026.

Nevertheless, the whole industry’s total allotment has been limited to 0. 2 thousand metric tonnes per day.

The government has made it clear that factories where natural gas cannot be substituted for LPG will be given precedence.

To guarantee continuous production, these devices will be supplied with LPG in these situations.

Additionally, industries are obligated to register with oil marketing firms and submit applications for piped natural gas (PNG) connections through city gas distribution companies.

But in devices where LPG is a necessary and irreplaceable component of the production process, this restriction has been relaxed.

Seventy percent of packaged non-domestic LPG has also been distributed to states by the Centre.

Those states that implement reforms related to the adoption of PNG will receive an additional 10% allocation.

States have been instructed by the government to take three essential actions: disseminate the Natural Gas and Petroleum Products Distribution Order 2026 throughout all agencies, make prompt use of the LPG allocation benefits associated with the reform, and provide timely notification of regulations pertaining to compressed biogas.

The ministry had previously announced a significant increase in demand for smaller LPG tanks. Over 7. 8 lakh 5-kg free trade LPG cylinders have been sold nationwide since March 23.

In February, daily sales averaged about 77,000 cylinders, but one day this week, sales surpassed 1. 06 lakh cylinders.