The Ministry of Petroleum and Natural Gas has directed all states to increase commercial LPG, a vital cooking fuel in India, allocation by up to 70%

This additional LPG will be allocated primarily to industries. Priority will be accorded to sectors such as steel, automobiles, textiles, dyes, chemicals, and plastics.

The centre has clarified that priority in LPG allocation will be given specifically to those industries that require it for specialised heating processes and for which natural gas is not a viable alternative.

Further, it urged states to promptly avail themselves of the 10% additional allocation linked to performance-based reforms, if not done already. This initiative is expected to provide further relief to industries and facilitate smoother operations.

This comes amid's centre slashing excise duty on petrol and diesel by Rs 10 per litre to provide direct price relief.

"The Centre has ensured direct price relief by reducing excise duty on petrol and diesel by ₹10 per litre respectively. By prioritising domestic supply through strategic export duties on diesel and Aviation Turbine Fuel, the Government is ensuring that India’s growth engine remains unhindered," Union Commerce Minister Piyush Goyal noted.

Meanwhile, Petroleum Minister, Hardeep Singh Puri, noted that the centre had "decided to take a hit on its own finances again to safeguard the Indian citizen.

The excise duty reduction comes after Nayara Energy, the biggest private retail fuel merchant in India with over 6,000 stations, implemented a price hike, increasing petrol price by Rs 5 and diesel by Rs 3 per litre.