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regular-article-logo Sunday, 22 March 2026

Government speeds up city gas project clearances, pushes shift to PNG after increasing commercial LPG supply

The Petroleum and Explosives Safety Organisation has told its offices to clear CGD applications within 10 days

Our Web Desk & PTI Published 22.03.26, 05:57 PM
Representational image

Representational image PTI

The Centre has moved to tighten gas distribution as it looks to keep supplies steady and manage demand amid global uncertainty. A key step is speeding up City Gas Distribution (CGD) projects.

The Petroleum and Explosives Safety Organisation (PESO) has told its offices to clear CGD applications within 10 days. The idea is to expand piped natural gas (PNG) networks faster and reduce reliance on LPG.

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Commercial users in cities are also being asked to shift to PNG. The push targets bulk consumers such as restaurants, hotels and industrial units, which depend heavily on LPG.

Domestic supply, for now, remains stable. There are no reports of dry-outs at LPG distributorships, and deliveries are running as usual.

Most refills are being done through the Delivery Authentication Code (DAC) system, and panic bookings have eased. On the commercial side, LPG allocations have been raised in phases.

After restoring 20 per cent supply, the government added 10 per cent more on March 18. Another 20 per cent was cleared on March 21, taking total supply to 50 per cent.

The additional supply is being directed to sectors that need it the most - restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations and community kitchens.

Subsidised food outlets run by states and local bodies are also part of the priority list. A provision for 5 kg cylinders has been made for migrant workers. So far, around 20 states and Union Territories have implemented the revised allocation guidelines.

In other regions, public sector oil marketing companies are handling supply. In the past eight days, about 15,440 tonnes of LPG have been lifted by commercial users.

Hospitals and educational institutions continue to get priority, accounting for nearly half of total allocations.

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