Government Boosts Commercial LPG Allocation by 10% to States and UTs
Synopsis
In a pivotal decision, the Indian government has increased the commercial LPG allocation by 10% for States and UTs. This initiative supports the transition from LPG to PNG, backed by a robust domestic LPG production increase.
Key Takeaways
10% increase in commercial LPG allocation.
Domestic LPG production up by 40%.
Monitoring of LPG supply due to geopolitical tensions.
Encouragement for commercial LPG users to switch to PNG.
Incentives offered by CGD companies for new connections.
New Delhi, March 18 (NationPress) In a significant move, the government announced on Wednesday that it will provide an additional 10% allocation of commercial LPG to States and Union Territories (UTs), closely tied to the reforms facilitating the transition from LPG to PNG.
The Ministry of Petroleum and Natural Gas reported that all oil refineries across India are functioning at optimal capacity, supported by sufficient crude inventories and a notable increase of approximately 40% in domestic LPG production.
According to the ministry's official statement, "India's production of petrol and diesel is ample, eliminating the need for imports to satisfy domestic requirements."
The ministry also highlighted that LPG supply is being closely monitored amid current geopolitical tensions. Domestic LPG cylinder deliveries are proceeding smoothly, with no reports of dry-outs at distribution points.
There has been a surge in online LPG bookings, rising from 83% to 93%, along with an increase in Delivery Authentication Code coverage from 53% in February to about 81% now to combat diversion.
An extra allocation of 48,000 KL of kerosene has also been extended to States and UTs as an alternative cooking fuel, with requests made for these regions to establish distribution points.
Regular supplies of petrol and diesel are being maintained, with no incidents of fuel shortages reported by oil marketing firms.
Citizens are urged to refrain from panic buying, as sufficient stocks are available, the statement emphasized.
Priority sectors continue to receive protected gas supplies, ensuring 100% availability to domestic PNG and CNG transport, while supplies for industrial and commercial consumers are regulated at around 80%.
Commercial LPG users are encouraged to transition to PNG, with establishments such as hotels, restaurants, hospitals, and hostels able to obtain PNG connections from authorized City Gas Distribution (CGD) companies.
CGD firms, including IGL, MGL, GAIL Gas, and BPCL, are providing incentives to foster both domestic and commercial PNG connections.
The government is actively expanding the CGD network to promote clean and efficient PNG consumption, urging businesses to connect with authorized CGD entities. These entities have been instructed to ensure maximum gas supply to essential sectors like seed drying units and cold storage facilities, the statement concluded.
Point of View
The government's decision to increase commercial LPG allocation represents a strategic shift towards cleaner energy solutions. By promoting the use of PNG over LPG, the initiative not only addresses current energy demands but also aligns with broader environmental goals.
NationPress
1 Jul 2026
Frequently Asked Questions
What is the new LPG allocation for States and UTs?
The government has announced an additional 10% allocation of commercial LPG for States and UTs.
Why is the LPG supply being monitored?
LPG supply is being monitored due to the current geopolitical situation to ensure uninterrupted deliveries.
What incentives are being offered for switching to PNG?
CGD companies are providing incentives to encourage both domestic and commercial PNG connections.
How much has domestic LPG production increased?
Domestic LPG production has increased by approximately 40%.
Are there any reports of fuel shortages?
No cases of fuel dry-outs have been reported at retail outlets.
