Centre says that the extra 20 per cent allocation shall be given on priority to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy and others
In an attempt to stabilise the sectors heavily dependent on gas supply, the Centre has allowed another 20 per cent allocation of commercial LPG to states, which would take the overall allocation to 50 per cent (including 10 per cent allocation based on ease of doing reforms for PNG expansion).
The Ministry of Petroleum and Natural Gas informed that the additional 20 per cent allocation shall be given on priority to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by state government or local bodies for food, community kitchens, five kilogram FTL for migrant labourers.
“20 states/union territories have issued orders to allocate the Non-domestic LPG in line with the guidelines issued by the government of India. For the rest of the states/UTs, public sector undertaking (PSU) Oil Marketing companies (OMC) are releasing commercial LPG cylinders. A total of around 15,440 MT has been uplifted during the last eight days by commercial entities in the states/UTs,” the official statement added.
The Centre added that educational Institutions and Hospitals have been prioritised and around 50 per cent of the total commercial LPG allocation is going to these sectors. On the domestic LPG supply front, the statement noted that there has been no reported dry-out at LPG distributorships. Centre said that majority of the deliveries are happening via Delivery authentication code (DAC) and panic buying has reduced.
Central government vide letter dated 20 March 2026 has requested all central government ministries to undertake a comprehensive assessment of potential demand for PNG connections in establishments under various ministries/departments of the government and to designate a nodal officer from each ministry/department to coordinate this exercise.
In response to above letter, Petroleum and Explosive Safety Organisation (PESO) has advised all its offices to dispose off CGD applications on priority (within ten days of receipt).
