Centre raises LPG allocation quota to 50% as supply situation improves

The government has increased the allocation of commercial LPG to 50 per cent by approving an additional 20 per cent supply for states and Union Territories, citing improved domestic production that is gradually restoring normalcy.

The move comes after the three-week-long Middle East conflict of 2026 disrupted energy supplies to India. In the initial phase, authorities curtailed LPG supply to commercial users such as hotels and restaurants to prioritise household consumption.

Subsequently, about 20 per cent of the curtailed supply was restored, followed by an additional 10 per cent allocation, conditional on states speeding up piped gas infrastructure projects.

On Saturday, the government announced a further 20 per cent increase in allocation for key sectors, including restaurants, hotels, industrial canteens, food processing units, community kitchens and subsidised food outlets. The move also aims to support migrant workers through targeted distribution.

According to a communication from the oil secretary to states, commercial establishments will be eligible for the additional allocation only if they register with oil companies and apply for piped natural gas (PNG) connections.

An official statement said domestic LPG supplies remain stable, with no shortages reported at distributorships and delivery operations continuing as usual. Authorities noted a decline in panic bookings and advised citizens to avoid crowding and depend on home delivery.

To ease pressure on LPG supplies, the government is encouraging a transition to PNG, especially for commercial users, and has asked states to fast-track approvals for city gas distribution networks. At the same time, refineries are operating at high capacity with sufficient crude stocks, ensuring adequate availability of petrol and diesel.

The statement added that no fuel shortages have been reported at retail outlets and urged the public not to resort to panic buying.

Supplies of natural gas to priority segments, including domestic PNG users and CNG transport, are being fully maintained, while industrial consumers are receiving around 80 per cent of their usual supply.

Other measures include ramping up domestic LPG production, extending booking intervals, and supplying additional kerosene to states as an alternative fuel option. States and Union Territories have been instructed to keep strict watch against hoarding and black marketing. More than 3,500 raids have been carried out across the country, resulting in the seizure of nearly 1,400 LPG cylinders.

Most states have also established control rooms and district-level monitoring committees to oversee supply and distribution. In the maritime sector, the government said 22 Indian-flagged vessels with 611 seafarers remain in the western Persian Gulf region, with no incidents reported in the past 24 hours.