The Ministry of Petroleum and Natural Gas (MoPNG) has enhanced the allocation of C3 (propane) and C4 (butanes/butenes) streams to 1,000 tons per day (TPD) for critical sectors such as pharmaceuticals, packaging, and polymers. This move is aimed at strengthening domestic supply chains and supporting downstream chemical industries.
Policy Framework to Ensure Feedstock Availability
Earlier, on April 1, the government introduced a scheme mandating refining companies, including petrochemical complexes, to allocate minimum quantities of C3 and C4 streams to priority sectors. These include departments such as pharmaceuticals, chemicals and petrochemicals, and Food and public distribution.
Subsequently, the Centre for High Technology determines allocations based on refinery sources and sectoral demand. Initially, the government allocated 800 TPD on April 8; however, it has now increased the allocation by 25% to 1,000 TPD to meet rising industry requirements.
Inter-Ministerial Coordination Strengthens Supply
To further streamline supply, the government established an inter-ministerial Joint Working Group (JWG). This body ensures the consistent availability of petrochemical feedstock for the domestic market.
Sujata Sharma, Joint Secretary in MoPNG, stated that based on inputs from the Department of Pharmaceuticals, Department of Chemicals and Petrochemicals, and Department for Promotion of Industry and Internal Trade, the enhanced allocation from the LPG pool has been implemented for pharma and chemical sector companies. Since April 9, 2026, around 1,800 tons of propylene have already been supplied, indicating strong demand and effective implementation of the policy.
Government Ensures Uninterrupted Domestic Fuel Supply
Despite ongoing global geopolitical challenges, the government has maintained 100% supply of domestic LPG, PNG, and CNG (transport). This has helped prevent disruptions in essential energy services across the country. In addition, the supply of 5 kg Free Trade LPG (FTL) cylinders for migrant workers has been doubled, based on consumption trends observed in early March 2026. Importantly, no stockouts or “dry-outs” have been reported at LPG distributorships.
Commercial LPG Supply Shows Strong Recovery
The government has also taken steps to stabilize commercial LPG supply. Currently, allocation levels have reached around 70% of pre-crisis volumes, including 10% linked to piped natural gas (PNG) reforms. Since March 23, over 14.6 lakh 5-kg FTL cylinders have been sold. Furthermore, public sector oil marketing companies have conducted more than 5,000 awareness campaigns since April 3, resulting in the sale of over 57,800 units.
Between March 14 and now, approximately 1,34,226 tonnes of commercial LPG—equivalent to over 70.64 lakh 19-kg cylinders—have been distributed. This includes more than 8,000 tonnes of auto LPG. Notably, average daily auto LPG sales in April 2026 (up to April 14) have risen to 282 TPD, compared to 177 TPD in February, reflecting increased demand.
PNG Adoption Accelerates Across India
Meanwhile, the adoption of piped natural gas (PNG) continues to grow rapidly. Since March, about 4.5 lakh new PNG connections have been activated, while another 5 lakh consumers have registered for connections. At the same time, over 34,200 consumers have voluntarily surrendered their LPG connections through the MYPNGD platform, indicating a shift toward cleaner fuel alternatives.
Strengthening India’s Petrochemical and Energy Ecosystem
Overall, the increased allocation of C3 and C4 streams highlights the government’s proactive approach to supporting critical industries amid global uncertainties. As reported by thehindubusinessline.com, by ensuring feedstock availability, stabilizing fuel supply, and promoting cleaner energy adoption, India continues to strengthen its petrochemical and energy ecosystem while advancing its long-term sustainability goals.
