Centre hikes Commercial LPG Allocation to 50% for States with Conditions

New Delhi, Mar 22 (TNT) : The Ministry of Petroleum and Natural Gas has increased the allocation of commercial LPG to states to 50 per cent of pre-crisis levels, subject to specified conditions, according to an official communication.
In a letter to all states on Saturday regarding upcoming measures on gas cylinder supply, Secretary, Neeraj Mittal, said an additional 20 per cent allocation will come into effect from March 23, 2026, over and above the existing 30 per cent allocation.
The current allocation comprises 20 per cent for general commercial use and an additional 10 per cent linked to ease of doing business reforms for expansion of PNG (Piped Natural Gas) infrastructure.
The additional allocation will be prioritised for sectors such as restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidised canteens run by governments or local bodies, community kitchens, and 5-kg FTL cylinders for migrant labourers, with measures to prevent diversion.
As per the conditions, all commercial and industrial LPG consumers must register with Oil Marketing Companies (OMCs) to be eligible under the expanded allocation.
OMCs will maintain detailed records of consumers, including their sector of operation and annual LPG requirements.
Further, such consumers will be required to apply for PNG connections with the respective City Gas Distribution entities and take steps towards readiness for PNG adoption before being considered for allocation under the 50 per cent quota.
The move is aimed at rationalising LPG usage while encouraging a gradual transition to PNG in commercial and industrial segments.
TNT KS