Centre promises 10% more LPG to States that expedite piped gas rollout

Centre offers 10% more LPG to States that accelerate piped gas rollout amid ongoing supply challenges and increased consumer demand.

As the LPG supply squeeze extends into the third week, the central government on Wednesday (March 18, 2026) promised to increase supplies of commercial LPG to States that fast-track the rollout of piped gas networks in a bid to ease pressure on the cooking fuel availability.

As the war in West Asia blocked India's access to almost 60% of its LPG, the government prioritised supplies to domestic household kitchens. Supplies to commercial establishments, such as hotels, were initially cut off, but later gave a fifth of their requirement.

Now, the central government has offered to raise commercial LPG supplies to 30% in States that expedite the rollout of piped natural gas - an easier alternative to LPG for household kitchens and commercial establishments.

Briefing reporters, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said that while LPG supplies are constrained, piped natural gas (PNG) supplies to households and industries continue unabated.

"LPG users should shift to PNG wherever there is a city gas distribution (CGD) network nearby," she said, adding that her ministry has written to states, offering 10% more commercial LPG if they grant deemed permissions to all old applications, and the same after 24 hours of new application for laying pipelines, cut annual rental/lease charges and allow dig and restore schemes.

"Onus is on states and UTs to take this reform forward and expedite approvals," she said.