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Centre increases commercial LPG allocation to 50 pc for states and UTs

IANS
Updated: March 21st, 2026, 17:44 IST
in Business, Home News, National
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New Delhi: The government Saturday said that it has allowed another 20 per cent allocation of commercial LPG to states and Union Territories (UTs), which would take the overall allocation to 50 per cent (including 10 per cent allocation based on ease of doing business reforms for PNG expansion).

This additional 20 per cent allocation will be given on priority to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by state governments or local bodies for food, community kitchens, 5 Kg FTL (free trade LPG) for migrant labourers, the Ministry of Petroleum and Natural Gas said in a statement.

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The government earlier restored partial commercial LPG supply (20 per cent) to consumers. Further, the government allocated an additional 10 per cent of commercial LPG to States/UTs based on ease of doing business reforms for PNG expansion.

Moreover, 20 states/UTs have issued orders to allocate the non-domestic LPG in line with the guidelines issued by the Central Government.

For the rest of the states/UTs, PSU oil marketing companies are releasing commercial LPG cylinders. A total of around 13,479 MT has been uplifted during last week by commercial entities in the states/UTs, informed the ministry.

Educational Institutions and Hospitals have been prioritised and around 50 per cent of the total commercial LPG allocation is going to these sectors, said the official statement.

Maintaining that supply of LPG is still a concern in view of the prevailing geopolitical situation, the ministry said domestic LPG production from refineries has increased, and panic bookings have reduced. The majority of the deliveries are happening via Delivery authentication code (DAC).

“No cases of fuel dry-outs have been reported at any of the retail outlets by the Oil Marketing Companies. The Government reiterates its advice to the public not to resort to panic buying, as adequate stocks of petrol and diesel are available and supplies are being maintained regularly,” it reiterated.

All refineries are operating at high capacity, with adequate crude inventories in place. The country is also maintaining sufficient stocks of petrol and diesel, said the government.

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