India’s Auto Industry Urges Restoration of LPG, PNG, Propane Supplies

India’s automobile and auto component sector is seeking urgent restoration of gas allocations as supply disruptions threaten production schedules. In a letter to the Ministry of Petroleum and Natural Gas, the Society of Indian Automobile Manufacturers (SIAM) warned that restricted supplies of liquefied petroleum gas (LPG), piped natural gas (PNG), and propane could disrupt vehicle manufacturing and impact employment across the Rs 20 lakh crore industry.

Automakers rely on LPG, PNG, and propane for critical processes such as castings, forgings, paint shops, and other heat-intensive operations. Over the years, many manufacturers have shifted from oil-based fuels to gaseous alternatives to adopt cleaner, environmentally-friendly production methods. SIAM emphasized that any fuel transition requires significant infrastructure investment, time, and adherence to strict safety protocols due to the inherent risks of fire hazards.

The Ministry has limited LPG supply to domestic use and invoked the Essential Commodities Act to protect household cooking gas availability. SIAM has requested the government to restore industrial allocations and provide transparent visibility on gas availability through a dedicated interface, aiming to prevent production cuts and ensure uninterrupted operations for the automobile sector.

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