Govt raises commercial LPG supply to 50% of pre-crisis levels, prioritises hotels & food units

The central government has announced that, with effect from March 23, 2026, an additional 20 pr cent allocation of commercial LPG will be made available to the state, raising the overall supply to 50 per cent of pre-crisis levels. This move comes following the earlier allocation of 20 per cent and an additional 10 per cent under the ease of doing business reforms for PNG expansion.

Additional LPG allocation announced

Dr Neeraj Mittal, Secretary of the Ministry of Petroleum & Natural Gas, in a letter to all State and UT Chief Secretaries, said, "I wish to now inform you that w.e.f 23.3.26 till further notification, another 20 per cent is being allotted to the State, which would take the overall allocation to 50 per cent of the pre-crisis level."

He expressed hope that the state has implemented the necessary reforms to avail the full 30 per cent allocation provided earlier. The new allocation aims to further support key sectors while ensuring efficient distribution and registration mechanisms.

Priority sectors for the additional LPG allocation

The additional 20 per cent allocation will be prioritised for the sectors such as restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidised canteens or outlets run by state governments or local bodies, community kitchens, and 5kg LPG cylinders for migrant labourers. Measures will also be implemented to prevent any diversion of the LPG supplied.

"The additional allocation of 20 per cent shall be given on priority to the following sectors: restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by state governments or local bodies for food, community kitchens, 5kg FTL for migrant labourers, along with measures to ensure no diversion," the letter noted.

Registration required for commercial and industrial consumers

Furthermore, all commercial and industrial LPG consumers must register with the oil marketing companies (OMCs) to be eligible for supplies from the overall 50 per cent allocation. OMCs will maintain detailed records of registered customers, including their sector, end-use, and annual LPG requirements.

PNG connection mandatory for eligibility

In addition, all commercial and industrial consumers are required to apply for PNG (piped natural gas) connections with the City Gas Distribution entities in their respective cities. Consumers must take necessary steps to be in a state of readiness for receiving PNG before being eligible for commercial LPG allotments from the enhanced allocation.

This step is expected to strengthen fuel supply for businesses and institutions while encouraging a transition to piped gas infrastructure across the state.

Frequently-Asked Questions (FAQs) on the new LPG allocation announced

1) What is the new commercial LPG allocation announced by the central government?

With effect from March 23, 2026, an additional 20 per cent commercial LPG allocation has been made available to states, raising the overall supply to 50 per cent of pre-crisis levels.

2) Which sectors will get priority under the additional LPG allocation?

The additional 20 per cent allocation will be prioritised for the sectors such as restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidised canteens or outlets run by state governments or local bodies, community kitchens, and 5kg LPG cylinders for migrant labourers. Measures will also be implemented to prevent any diversion of the LPG supplied.

3) Do commercial and industrial consumers need to register to avail LPG supplies?

Yes. All commercial and industrial LPG consumers must register with the oil marketing companies (OMCs) to be eligible for supplies from the overall 50 per cent allocation. OMCs will record each customer’s sector, end-use, and annual LPG requirements.

4) Is a PNG (piped natural gas) connection mandatory for eligibility?

Yes. All commercial and industrial consumers must apply for PNG connections with City Gas Distribution entities in their cities. Consumers must be ready to receive PNG before becoming eligible for commercial LPG allotments from the enhanced allocation.