Govt hikes commercial LPG allocation to 50% as domestic output improves

Government increases commercial LPG allocation to 50% as domestic output stabilizes, supporting key sectors and migrant workers.

The government has approved an additional 20% allocation of commercial LPG to States and Union Territories, taking the total allocation to 50%, as increased domestic output is helping the situation crawl back to normalcy.

The three-week-long war in the West Asia disrupted energy supplies to India, leading to initial curtailment in LPG supplies to commercial establishments like hotels to prioritize supplies to household kitchens.

Later, a fifth of their supplies were restored, and the government offered an additional 10%, subject to States expediting piped gas projects.

On Saturday (March 21, 2026), the government announced a 20% enhanced allocation to key sectors such as restaurants, hotels, industrial canteens, food processing units, community kitchens and subsidised food outlets, while also supporting migrant workers through targeted distribution.

The additional allocation will be subject to commercial establishments registering with oil companies and applying for a piped natural gas connection, according to a letter written by the oil secretary to States.

An official statement said domestic LPG supply remains stable, with no reported shortages at distributorships and normal delivery operations continuing.