Center increases LPG allocation to 50% of pre-crisis level, gives priority to food and hospitality sectors
New Delhi: According to a communication from the Ministry of Petroleum and Natural Gas, the Center has increased gas allocation to states and Union Territories to 50 per cent of the pre-crisis level, with an additional 20 per cent supply to be implemented from March 23.In a letter to Chief Secretaries of all states and Union Territories, Petroleum Secretary Dr Neeraj Mittal said the increased allocation is aimed at supporting key sectors, especially those related to food supply and public welfare.“I would like to now inform you that from 23.3.26 till further notification, an additional 20% is being allocated to the State, which will take the total allocation to 50% of the pre-crisis level. The additional allocation of 20% will be given on priority to the following sectors: Restaurants, Dhabas, Hotels, Industrial Canteens, Food Processing/Dairies, Food subsidized canteens/outlets run by State Governments or local bodies, Community Kitchens, 5 FTL for KG migrant labourers, with measures to ensure no deviation…,” read the letter.The ministry said the priority sectors for additional allocation include restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidized canteens run by state governments or local bodies, community kitchens and 5 kg free trade LPG for migrant labourers.“Additional allocation of 20% will be given to the following sectors on priority basis – restaurants, dhabas, hotels, industrial canteens, food processing/dairies, subsidized canteens/outlets run by state governments or local shops for food, community kitchens, 5 kg FTL for migrant laborers along with measures to ensure no diversion.”It also said that all commercial and industrial LPG consumers will have to register with oil marketing companies before being eligible for allocation under the 50 per cent supply.“All commercial/industrial LPG consumers will have to register with the OMC before being eligible to be allotted any commercial LPG out of the overall 50% allocation. The OMC will register such customers and maintain a record of the area in which they serve the end use of LPG and the annual weight requirement of LPG of that customer in the respective database.”Further, such consumers will have to apply for piped natural gas connection with the city gas distribution unit in their respective areas and take steps to be ready for PNG supply to qualify for LPG allocation.“All commercial/industrial LPG consumers will have to apply for PNG with the applicable City Gas Distribution Unit in their city and take all actions that will take them to a state of readiness to receive PNG, before they can be eligible to be allotted any commercial LPG out of the overall 50% allocation.”India’s weekly LPG imports fell to 265,000 tonnes in the week of March 19, from 322,000 tonnes in the week of March 5. Arrivals in West Asia fell to just 89,000 tonnes in the week ended March 19, the lowest share since January 2026, according to S&P Commodities at Sea (CAS).However, the report said alternative regional supplies rose to 176,000 tonnes in the week to March 19, mainly from the US, up from zero the previous week, when West Asia accounted for 100% of imports.Indian oil marketing companies are likely to import 2.2 million tonnes of LPG from the US in 2026, the report said. CAS data said US LPG loading to India is increasing, with volumes now exceeding those from traditional Gulf suppliers. India imports about 60% of its LPG requirement and about 90% of it comes from West Asia.
