In a major relief measure for restaurants, dhabas, hotels, and other commercial users grappling with LPG shortages triggered by West Asian tensions, the Ministry of Petroleum and Natural Gas has announced an additional 20% allocation of commercial LPG to states and Union Territories.
This boost, effective from Monday until further notice, raises the total supply to 50% of pre-crisis levels.
The decision follows an earlier 10% incentive-linked increase on March 18 for states expediting piped natural gas (PNG) expansion and reforms. Dr Neeraj Mittal, Secretary in the Ministry, wrote to Chief Secretaries stating, “I wish to now inform you that w.e.f. 23.3.26 until further notification, another 20% is being allotted to the State, which would take the overall allocation to 50% of [pre-crisis level].”
Priority will be given to essential sectors, including restaurants, roadside dhabas, hotels, industrial canteens, dairy and food processing units, state-run concessional canteens, community kitchens, and 5 kg FTL cylinders for migrant workers.
To qualify for the enhanced quota, commercial and industrial consumers must register with Oil Marketing Companies (OMCs) to build a comprehensive database of usage and requirements. They are also required to apply for PNG connections from city gas distribution entities and complete technical preparations — signalling the government’s push for a long-term shift from cylinder-based LPG to piped gas.
States have been directed to enforce strict measures against hoarding or diversion. The move aims to ease acute scarcity, curb panic buying, and support businesses while accelerating PNG adoption for sustainable supply security.
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