New Delhi: In a significant effort to alleviate ongoing LPG supply challenges, the Government of India has announced an increase in the allocation of commercial LPG to states, raising it to 50% of pre-crisis levels. This decision was communicated in an official directive from Dr. Neeraj Mittal, Secretary of the Ministry of Petroleum and Natural Gas.
Effective March 23, 2026, the allocation will increase by an additional 20%, up from the previous 30%.
The enhanced LPG supply will prioritize essential sectors such as restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations, and community kitchens. Special provisions are also in place for subsidized canteens managed by state governments and for migrant workers.
To qualify for this allocation, all commercial and industrial LPG consumers are now required to register with Oil Marketing Companies (OMCs). Authorities will keep detailed records of sector usage and annual LPG needs.
Additionally, the Centre has mandated that commercial LPG users apply for Piped Natural Gas (PNG) connections through city gas distributors. Only those making efforts to transition to PNG will be eligible for the revised LPG allocation.
These increased allocations come with strict conditions to ensure proper utilization and prevent diversion. Officials have indicated that these measures aim to stabilize supply while promoting a long-term shift towards PNG infrastructure. This move is expected to provide partial relief to businesses, particularly in the hospitality and food sectors, which have faced significant challenges due to recent LPG supply disruptions.
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