India's Government Increases Commercial LPG Allocation Amidst Shortage Concerns

The Ministry of Petroleum and Natural Gas on Saturday approved an additional 20% allocation of commercial LPG to states/Union Territories. This has increased the total allocation by Centre to 50% of pre-crisis level, 30% more than the allocation already being availed by states/UTs. The extended allocation will be implemented from March 23, 2026. The central government stated that the additional allocation of 20% shall be given on priority to restaurants, dhabas, hotels, industrial canteen, food processing/dairy, subsidised canteens/outlets run by state governments or local bodies for food and community kitchens. All commercial/industrial LPG consumers will have to be registered with OMCS before they can be eligible to be allotted any commercial LPG from the overall 50% allocation. OMCs shall register such customers and keep a record of the sector they operate in the end-use of LPG and annual weight requirement of LPG of that customer in respective database(s). All commercial/industrial LPG consumers will have to apply for PNG with the City Gas Distribution entity in their city as applicable and take all actions that will take them to a state of readiness for receiving PNG before they can be eligible to be allotted any commercial LPG from the overall 50% allocation. Amidst the escalating war between Israel-US and Iran and tensions over the Strait of Hormuz, there is mounting concerns in India over the shortage of LPG cylinders.