New Delhi: In a significant effort to alleviate ongoing LPG supply constraints, the Government of India has raised the allocation of commercial LPG to states to 50% of pre-crisis levels, as announced by the Ministry of Petroleum and Natural Gas. The directive, issued by Dr. Neeraj Mittal, Secretary of the Ministry, states that an additional 20% allocation will take effect on March 23, 2026, increasing the total allocation from the previous 30% to 50%.
The additional LPG allocation will prioritize key sectors such as restaurants, dhabas, hotels, industrial canteens, food processing units, dairy sectors, and community kitchens. Special provisions have also been made for subsidized canteens operated by state governments and for migrant workers.
According to the new guidelines, all commercial and industrial LPG consumers must register with Oil Marketing Companies (OMCs) to qualify for allocation. Authorities will maintain detailed records of usage sectors and annual LPG requirements.
Furthermore, the Centre has mandated that commercial LPG users apply for Piped Natural Gas (PNG) connections through city gas distributors. Only those taking steps to transition to PNG will remain eligible for LPG allocation under the revised quota.
This increased allocation comes with strict conditions to ensure proper utilization and prevent diversion. Officials indicated that these measures aim to stabilize supply while promoting a long-term shift towards PNG infrastructure. The move is expected to provide partial relief to businesses, particularly in the hospitality and food sectors, which have been severely affected by recent LPG supply disruptions.
