Govt hikes commercial LPG allocation to 50% as domestic output improves

The three-week-long war in the Middle East disrupted energy supplies to India, leading to initial curtailment in LPG supplies to commercial establishments.

New Delhi: The Centre on Saturday announced an additional 20 per cent allocation of commercial LPG to states and Union Territories, raising the total allocation to 50 per cent of pre-crisis levels as improved domestic output. 

Soon after the West Asia conflict started on February 28, the Centre paused the distribution of commercial establishments such as hotels to prioritise domestic consumers.

Subsequently, 20 percent of commercial supplies was restored, followed by an additional 10 per cent contingent on states expediting piped natural gas (PNG) projects.

The Ministry of Petroleum and Natural Gas in letter to states said that it enhanced 20 per cent allocation of commercial LPG to target key sectors, including restaurants, hotels, industrial canteens, food processing units, dairy units, community kitchens, and subsidised food outlets operated by state governments or local bodies. It will also support migrant workers through targeted distribution of 5 kg cylinders.

The additional allocation is conditional on all commercial and industrial LPG consumers registering with oil marketing companies (OMCs). OMCs must register these customers, maintain records of their sector, end-use of LPG, and annual requirements in their databases, said Neeraj Mittal, Secretary to the Ministry in his letter.

The letter also said that all commercial LPG users have to apply for a piped natural gas (PNG) connection with the City Gas Distribution (CGD) entity in their area, where applicable.

Separately, an official statement said that domestic LPG supply remains stable, with no shortages reported at distributorships and normal delivery operations continuing. Even the panic bookings have declined significantly, and citizens are advised to avoid crowding at outlets and opt for home delivery.

To ease pressure on LPG supply, the government is encouraging consumers to shift to piped natural gas (PNG), especially for commercial establishments, and has urged states to fast-track approvals for city gas distribution networks.

Meanwhile, all refineries are operating at high capacity with sufficient crude inventories, ensuring adequate availability of petrol and diesel.No fuel shortages have been reported at retail outlets, and the public has been cautioned against panic buying.

Natural gas supplies to priority segments including domestic PNG and CNG for transport are being fully maintained, while industrial consumers receive about 80 per cent of their usual allocation.Additional measures include boosted domestic LPG production, extended booking intervals, and extra kerosene allocations to states as an alternative fuel option, the statement said.

As part of crack down hoarding, over 3,500 raids have been conducted nationwide, resulting in the seizure of around 1,400 LPG cylinders.Most states have established control rooms and district-level monitoring committees to oversee supply and distribution, said the statement.