Argus News - Govt Raises Commercial LPG Supply To 50% For Restaurants, Hotels, Industries From March 23

New Delhi, Mar 21: The Centre on Saturday approved an additional 20% allocation of commercial LPG to states, raising the total supply to 50% of the pre-crisis level.

The enhanced allocation will come into effect from March 23, 2026, and remain in place until further notice.

Priority for Commercial and Industrial Sectors
The additional supply will be prioritised for restaurants, dhabas, hotels and other commercial and industrial sectors.

In a letter to state and Union Territory chief secretaries, Neeraj Mittal, secretary in the Ministry of Petroleum and Natural Gas, outlined the revised allocation.

“I wish to now inform you that w.e.f. 23.3.26 till further notification, another 20% is being allotted to the State, which would take the overall allocation to 50% of the pre-crisis level,” the letter said.

It added that the additional allocation would be prioritised for restaurants, dhabas, industrial canteens, food processing and dairy units, subsidised canteens run by governments or local bodies, community kitchens and 5 kg free trade LPG for migrant labourers.

Mandatory Registration With Oil Marketing Companies
The government said commercial and industrial LPG users must register with oil marketing companies (OMCs) to receive supply under the revised allocation.

OMCs will record details such as sector of operation, end use of LPG and annual consumption requirements of each customer.

Also Read: Govt advises CGD entities to prioritise PNG connections for commercial establishment

PNG Connection Required for Eligibility
Commercial and industrial users will also be required to apply for piped natural gas (PNG) connections with the city gas distribution entity in their area.

They must take steps to be ready to receive PNG before becoming eligible for LPG under the additional allocation, the government said.