Govt directs faster processing of city gas projects, hikes commercial LPG allocation to ease supply stress

Commercial LPG consumers in major cities and urban areas have also been advised to shift to PNG as part of a broader strategy to reduce dependence on liquefied petroleum gas.

In the face of a difficult geopolitical situation, the government has increased allocations of commercial LPG to important sectors and expedited the processing of city gas projects in an effort to reduce supply strains and streamline gas distribution.

In an effort to expedite the spread of piped natural gas (PNG), the Petroleum and Explosives Safety Organization (PESO) has directed its offices to dispose of City Gas Distribution (CGD) applications within ten days, according to an official statement.

As part of a larger plan to lessen reliance on liquefied petroleum gas, commercial LPG users in large cities and urban regions have also been advised to switch to PNG.

Domestic LPG supply remains stable, with no reported dry-outs at distributorships and normal delivery patterns across the country, it said, adding that most deliveries are being carried out through Delivery Authentication Code (DAC), while panic bookings have subsided.

On the commercial LPG side, the government has progressively increased LPG allocations.

After restoring 20 per cent supply earlier, an additional 10 per cent allocation linked to PNG expansion reforms was announced on March 18. A further 20 per cent allocation cleared on March 21, taking the total commercial LPG supply to 50 per cent.

The latest increase prioritises sectors such as restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations, community kitchens, and subsidised food outlets run by state governments and local bodies, the statement said, adding that provision has also been made for 5 kg cylinders for migrant workers.

Around 20 states and Union Territories have implemented the revised allocation guidelines, while public sector oil marketing companies are supplying commercial LPG in the remaining regions. In the past eight days, about 15,440 tonnes of LPG have been lifted by commercial entities.

Educational institutions and hospitals continue to receive priority, accounting for nearly half of the total commercial LPG allocation.

Despite global uncertainties affecting supply, the government indicated that domestic availability remains under control while efforts continue to transition urban consumers toward PNG.