India Increases LPG Supply for Fertilizer and Commercial Sectors Amid Energy Crisis
India rolls back some LPG curbs, allots more gas to fertiliser plants
Hindustan Times
Image: Hindustan Times
The Indian government has raised gas allocation for fertilizer plants to 95% of their requirements and expanded commercial liquefied petroleum gas (LPG) supplies to various sectors including agriculture and pharmaceuticals. This decision follows a recent ceasefire agreement between the US and Iran, aimed at stabilizing energy supply chains amidst rising fuel prices.
- 01Gas allocation for fertilizer plants increased from 90% to 95%.
- 02Commercial LPG supplies now include agriculture, pharmaceuticals, and more.
- 03The government aims to meet 70% of gas requirements for new sectors by March.
- 04Over 1,10,000 free trade LPG cylinders sold in one day.
- 05Brent crude prices fell 15.3% following the US-Iran ceasefire announcement.
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On Wednesday, the Indian government announced an increase in gas allocation for fertilizer plants to 95% of their requirements, up from 90%. This decision marks the second increase in just a week, as the government aims to ensure adequate natural gas supplies, which serve as both fuel and feedstock for fertilizer production. Additionally, the government has expanded commercial liquefied petroleum gas (LPG) supplies to sectors such as agriculture, pharmaceuticals, and ceramics, targeting to fulfill 70% of their gas needs by March, with a total limit of 200 tonnes per day. This move comes in the context of a recent ceasefire between the US and Iran, which is expected to stabilize energy supply chains. Amid rising fuel prices, the price of Brent crude oil, which had surged to $119.5 per barrel, dropped 15.3% to $92.55 following the ceasefire news. The government has also doubled the supply of 5kg free trade LPG cylinders, addressing concerns over shortages that could affect migrant laborers in industrial sectors.
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The increased gas allocation for fertilizer plants is expected to enhance production and stabilize prices for agricultural inputs, which could benefit farmers and the agricultural sector. Additionally, the expanded LPG supply will help various industries meet their energy needs, potentially preventing disruptions and job losses.
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