Centre Hikes LPG Allocation to 50% Amid Supply Crunch, Imposes Conditions on States
Centre Raises LPG Allocation to 50% Amid Supply Concerns, Sets Conditions for States
Srinagar, Mar 21 (KNC): The Ministry of Petroleum and Natural Gas, Government of India, has enhanced the allocation of commercial LPG to states up to 50 per cent of the pre-crisis level, with effect from March 23, 2026, subject to certain conditions.
According to an official communication issued by the Ministry, as per news agency Kashmir News Corner (KNC), the move follows the earlier decision to allocate 30 per cent LPG, including an additional 10 per cent linked to ease of doing business reforms aimed at expanding Piped Natural Gas (PNG) infrastructure.
The letter stated that a further 20 per cent allocation has now been approved, taking the total allocation to 50 per cent, in view of the prevailing supply scenario.
As per the guidelines, the additional allocation will be prioritised for key sectors including restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidised food outlets run by state governments or local bodies, community kitchens, and migrant labourers through 5 kg free trade LPG cylinders.
The Ministry has also made it mandatory for all commercial and industrial LPG consumers to register with Oil Marketing Companies (OMCs) to be eligible for allocation under the revised quota. The OMCs will maintain records of consumers, including their sector, end-use and annual LPG requirement.
Further, consumers will be required to apply for PNG connections with the City Gas Distribution (CGD) entities and take necessary steps towards transitioning to PNG, before becoming eligible for LPG allocation under the enhanced quota.
The communication, issued by Dr. Neeraj Mittal, emphasised that these measures are aimed at ensuring optimal utilisation of LPG, preventing diversion, and promoting a gradual shift towards cleaner fuel alternatives like PNG.
The Ministry expressed hope that states would implement the required reforms and effectively utilise the increased allocation to support essential sectors during the ongoing supply constraints. (KNC)
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