Centre Approves 20% Additional Commercial LPG Allocation for States

Centre Approves 20% Additional Commercial LPG Allocation for States

Date:

TNI Bureau: In a major relief for commercial establishments, the Ministry of Petroleum and Natural Gas has approved an additional 20% allocation of commercial LPG for states. The decision was communicated in a letter issued by Secretary Dr. Neeraj Mittal on March 21, 2026.

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Effective March 23, 2026, the enhanced allocation will take the total LPG supply to 50% of pre-crisis levels, supplementing the existing 30% quota already being utilised by states.

As per the guidelines, the additional supply will be prioritised for high-demand sectors such as restaurants, dhabas, hotels, industrial canteens, food processing units, and community kitchens, ensuring continuity of essential commercial operations.

However, the Centre has imposed strict conditions for accessing the increased quota. All commercial and industrial LPG consumers must register with oil marketing companies (OMCs), which will maintain detailed consumption records.

Additionally, consumers are required to apply for PNG connections and prepare for a gradual transition to piped natural gas.

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