In response to the ongoing West Asia crisis and its impact on energy supplies, the Central government has announced an additional 20 per cent allocation of commercial LPG to states, aimed at supporting essential sectors such as restaurants, dhabas, and migrant workers.

LPG allocation increased to 50% of pre-crisis levels

The latest move, effective from March 23, takes the total commercial LPG allocation to 50 per cent of pre-crisis levels. The decision comes as part of efforts to ensure continuity in food services and support vulnerable communities during supply disruptions.

Petroleum Secretary Neeraj Mittal informed state authorities that the additional allocation would be over and above the earlier 20 per cent allotment, along with a separate 10 per cent allocation linked to the expansion of PNG (piped natural gas) networks.

Priority sectors identified for distribution

The government has directed states to prioritise specific sectors while distributing the additional LPG supply. These include restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations, and subsidised food outlets run by government bodies.

Community kitchens and migrant workers have also been identified as key beneficiaries. Notably, provisions have been made for supplying 5 kg free trade LPG cylinders (FTL) to migrant labourers.

Conditions imposed to prevent misuse

To ensure transparency and prevent diversion, the Centre has laid down strict conditions for availing the additional LPG allocation.

All commercial and industrial LPG consumers must register with Oil Marketing Companies (OMCs), providing details about their operations and annual LPG requirements. Authorities will maintain a database to track usage and ensure compliance.

Further, consumers are required to apply for PNG connections wherever available and take steps towards transitioning to piped gas systems. This move is expected to reduce long-term dependence on LPG.

Balancing supply amid global uncertainties

The decision reflects the government’s attempt to balance domestic energy needs amid global uncertainties triggered by geopolitical tensions in West Asia. Ensuring uninterrupted access to cooking fuel for essential services remains a priority.

The move is expected to provide relief to small businesses, eateries, and migrant workers who are among the most affected during supply constraints.