Offering further respite to commercial establishments running short of liquified petroleum gas (LPG) cylinders, the Ministry of Petroleum and Natural Gas (MoPNG) has decided to allocate States an additional 20% of their average monthly requirement of commercial LPG. Once this directive comes into effect on March 23, States will be getting half of their monthly commercial cooking gas requirements, from the cumulative allocations made in this and two previous directives.

“I wish to now inform that with effect from 23.03.26 till further notification, another 20% is being allotted to the State[s] that would take the overall allocation to 50% of the pre-crisis level,” the MoPNG’s letter read.

The additional quantum is to be allocated on priority basis to restaurants, dhabas, hotels, industrial canteens, food processing units and dairies, subsidised canteens and outlets run privately or by State governments, and community kitchens, as well as 5 kg free trade LPG for migrant labourers. The Ministry also directed placing measures to ensure there are no diversions.

Pushing PNG transition

The directive also mandates that all commercial and industrial LPG consumers must apply for piped natural gas (PNG) with a city gas distribution (CGD) entity and scale a “state of readiness for receiving PNG” before they can be allotted any commercial LPG from the revised allocation.

The Union government has recently begun encouraging a transition to PNG, seeking to alleviate some pressure from LPG supplies mired in the Persian Gulf amidst escalating tensions in West Asia. India imports 60% of its overall LPG requirements, of which 90% is routed through the blockaded Strait of Hormuz.

Earlier, on March 18, the government had pledged to allocate an extra 10% of commercial LPG requirements to States and Union Territories provided they help with the transition to PNG. City gas distributors have also offered to incentivise the move by waiving security deposits and registration charges, or even promising ₹500-worth of free gas to consumers.

Refinery LPG production up 40%

“The supply of LPG continues to be a “concern in view of prevailing geopolitical situation,” according to the statement issued on Saturday. “Despite this war situation, Government has given highest priority to Domestic LPG and PNG, along with high priority to hospitals and educational institutions,” it added.

According to government data from Friday, the domestic production of LPG by refineries has risen about 40% compared to their production levels before the crisis, ever since supply maintenance orders mandated that refineries use propane, butene and other relevant streams to produce cooking gas, instead of petrochemicals.