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Centre raises commercial LPG allocation to 50 per cent as supply situation eases

Move follows earlier curbs after West Asia disruption while govt pushes PNG shift and assures stable domestic supply with no fuel shortages reported

Domestic boost Sourced by the Telegraph

Our Bureau
Published 22.03.26, 07:49 AM

The Centre approved an additional 20 per cent allocation of commercial LPG to states and Union Territories, taking the total allocation to 50 per cent, a sign of easing supply led by a ramp-up in domestic output.

The three-week-long war in West Asia disrupted supplies of cooking gas and liquefied natural gas to India, which forced the Centre to order a cutback in LPG supplies to commercial establishments like hotels to prioritise household supplies.

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Later, a fifth of their supplies were restored, and the government offered an additional 10 per cent, subject to states expediting piped gas projects.

On Saturday, the government announced a 20 per cent enhanced allocation to key sectors such as restaurants, hotels, industrial canteens, food processing units, community kitchens and subsidised food outlets, while also supporting migrant workers through targeted distribution.

The additional allocation will be subject to commercial establishments registering with oil companies and applying for a piped natural gas connection, according to a letter the oil secretary wrote to states.

An official statement said domestic LPG supply remains stable, with no reported
shortages at distributorships and normal delivery operations continuing.

Panic bookings have declined, and subscribers have been advised to avoid crowding and rely on home delivery.

To ease supply pressures, the government is also promoting a shift towards piped natural gas (PNG), particularly for commercial establishments, and has urged states to expedite approvals for city gas distribution networks. In parallel, all refineries are operating at high capacity with adequate crude inventories, ensuring sufficient availability of petrol and diesel.

No fuel shortages have been reported at retail outlets, and the public has been advised against panic buying, it said.

Natural gas supplies to priority segments, including domestic PNG and CNG transport, are being fully maintained, while industrial consumers are receiving about 80 per cent of their usual supply.

India LPG Crisis LPG Shortage Commercial LPG Crisis Indian Government
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