Centre directs to expedite city gas distribution projects to ease LPG supply strain

New Delhi: To ease pressure on liquefied petroleum gas (LPG) supplies amid ongoing geopolitical tensions in West Asia, the Centre has instructed concerned authorities to expedite city gas distribution (CGD) projects and streamline gas distribution networks.

The Petroleum and Explosives Safety Organisation (PESO) has directed its offices to dispose of CGD applications within 10 days. This measure aims to accelerate the rollout of piped natural gas (PNG), which serves as a reliable alternative to LPG.

Commercial LPG consumers in major cities and urban areas are being encouraged to switch to PNG as part of a long-term strategy to reduce reliance on LPG, according to an official from the Ministry of Petroleum and Natural Gas.

Domestic LPG supply remains stable, with no reported shortages or dry-outs at distributorships. Delivery patterns are normal across the country, and most bookings are now processed through the Delivery Authentication Code (DAC) system. Panic bookings have largely subsided.

On the commercial front, the government has progressively hiked LPG allocations. Additional 20% hike in allocation was cleared on March 21, bringing the total commercial LPG allocation to up to 50% of pre-crisis levels. This latest increase takes effect from March 23.

The enhanced allocation prioritises key sectors, including restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations, community kitchens, and subsidised food outlets run by state governments and local bodies. Provisions have also been made for 5 kg cylinders for migrant workers.

Around 20 states and Union Territories have implemented the revised guidelines, while public sector oil marketing companies are supplying commercial LPG in the remaining regions.

In recent days, commercial entities have lifted substantial volumes of LPG under these allocations.Educational institutions and hospitals continue to receive priority, accounting for nearly half of the total commercial LPG allocation.

Separately, the National Restaurant Association of India (NRAI) has raised concerns about the impact of commercial LPG shortages. The association has urged the Central Government to extend support across all states and recognise restaurants as an essential sector.

"The industry employs 8.2 million people — we urge the Central Government to extend this support across all states and recognise restaurants as essential," the NRAI in its post on X.