New Delhi: In response to ongoing supply challenges stemming from the conflict in West Asia, the central government has announced a significant increase in the commercial LPG cylinder quota, providing much-needed support to the food and hospitality sector.
On Saturday, the Ministry of Petroleum and Natural Gas declared an additional 20% allocation, raising the total supply to 50% of pre-conflict levels. This enhanced quota, effective from Monday, prioritises key establishments including restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations, subsidised canteens run by state governments and local bodies, as well as community kitchens.
The ministry has also emphasised continued distribution of 5kg portable cylinders to aid migrant workers. To access the additional allocation, commercial and industrial consumers must register with oil marketing companies (OMCs), specifying the end-use of the gas and their sector. Registration must include details such as annual weight requirement, and entities are required to demonstrate readiness for switching to piped natural gas (PNG) connections to qualify for the extra supply.
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The decision follows earlier restrictions triggered by disruptions in imports—India sources nearly half its LPG needs from West Asia, with about 90% of imports originating there. Initial measures prioritised domestic users, hospitals, and educational institutions, limiting commercial supplies to 20% of average requirements before incremental increases. A subsequent order on March 18 allowed an extra 10% for states promoting PNG infrastructure expansion.
Hotel and restaurant associations have reported severe impacts from the shortage, with estimates suggesting nearly 30% of establishments were forced to close temporarily, while others shortened operating hours, simplified menus, or curtailed kitchen activities to ration stocks.
Petroleum Secretary Neeraj Mittal, in a letter to chief secretaries of states and Union Territories, directed OMCs to maintain records of registered customers, including their operational sector and gas usage. He reiterated that demonstrating steps toward PNG adoption is essential for eligibility.
The government noted recent progress in transitioning consumers: over 13,700 new piped gas connections were issued in a recent fortnight, and more than 7,300 shifted from LPG to PNG since the week’s start. To diversify sources amid geopolitical strains, India is sourcing additional supplies from the US, Russia, Japan, and Norway.
While supply concerns persist due to international conditions, this quota hike signals a measured improvement, aiming to stabilise operations for priority commercial users without compromising domestic availability.