Union govt increases commercial LPG allocation to 50% amid supply recovery

The Union government on Saturday authorized an additional 20% allocation of commercial LPG for states and Union Territories, raising the total supply to 50% of pre-Middle East crisis levels. This decision follows a rise in domestic production, which is helping the energy sector gradually stabilize.

This enhanced quota will prioritize essential sectors, including restaurants, hotels, food processing units, industrial canteens, and community kitchens.

The plan also includes targeted distribution to support migrant workers.

The supply adjustments come after a three-week conflict in the Middle East severely hampered energy imports to India. To protect household fuel security, the government initially restricted LPG access for commercial establishments like hotels. However, with domestic output improving and alternative imports arriving, the Ministry of Petroleum and Natural Gas is now easing these curbs to support the broader hospitality and food industry.

According to a directive from the Oil Secretary, this additional allocation is contingent upon commercial establishments registering with oil companies and applying for Piped Natural Gas (PNG) connections.

An official statement said that domestic LPG supplies remain stable, with no reported shortages at distributorships and delivery operations functioning normally.

Panic LPG Bookings Decline

As panic bookings subside, citizens are advised to avoid crowding and continue relying on home delivery services.

To further alleviate supply pressures, the government is promoting a transition toward PNG, particularly for commercial users, and has urged state governments to accelerate approvals for city gas distribution networks.

Retail outlets have reported no fuel shortages, and the public is cautioned against panic buying. Natural gas supplies to priority segments, including CNG for transport and domestic PNG, are being fully maintained. Meanwhile, industrial consumers are currently receiving roughly 80% of their standard supply.

Additional remedial steps include boosting domestic LPG manufacturing, extending booking intervals, and providing states with extra kerosene to serve as an alternative fuel source.

States and Union Territories have been instructed to remain vigilant against hoarding and black marketing. Nationwide, authorities have already conducted over 3,500 raids, resulting in the seizure of approximately 1,400 LPG cylinders. Most states have established control rooms and district-level committees to oversee distribution.

In the maritime sector, the government noted that 22 Indian-flagged vessels, carrying 611 seafarers, remain in the western Persian Gulf with no incidents reported in the last 24 hours.

Karnataka minister says waste-to-gas model can address cooking fuel concerns

Meanwhile, Karnataka Transport Minister Ramalinga Reddy suggested decentralized waste-to-gas plants as a dual solution for Bengaluru’s waste issues and potential gas shortages.

Highlighting a successful model in Koramangala, Reddy noted that converting organic waste into biogas could decrease LPG dependence while solving urban waste challenges.