Government Boosts Commercial LPG Allocation to 50% for States and UTs Amid Declining Panic Booking
Synopsis
In a significant move, the government has increased commercial LPG allocation to 50% for states and UTs, prioritizing essential sectors. This decision comes as panic buying subsides, ensuring stable fuel supply amidst geopolitical concerns.
Key Takeaways
The government has increased commercial LPG allocation to 50% .
A 20% allocation will prioritize essential sectors.
Panic booking for LPG has decreased significantly.
Educational institutions and hospitals receive 50% of total allocations.
Public sector oil companies are distributing LPG cylinders effectively.
New Delhi, March 21 (NationPress) - The government announced on Saturday a further 20 percent allocation of commercial LPG to states and Union Territories (UTs), raising the total allocation to 50 percent (which includes a 10 percent allocation aimed at enhancing reforms for PNG expansion).
This extra 20 percent will be prioritized for sectors such as restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidized canteens or outlets operated by state governments or local organizations for food services, community kitchens, and 5 Kg FTL (free trade LPG) for migrant laborers, as stated by the Ministry of Petroleum and Natural Gas.
Previously, the government reintroduced a partial 20 percent supply of commercial LPG to consumers. Additionally, an extra 10 percent of commercial LPG was allocated to States and UTs based on their ease of doing business reforms related to PNG expansion.
Currently, 20 states/UTs have issued orders to allocate non-domestic LPG following the Central Government's guidelines.
For other states/UTs, public sector oil marketing companies are distributing commercial LPG cylinders. Approximately 13,479 MT has been uplifted by commercial entities in the last week, according to the ministry.
Educational institutions and hospitals are receiving priority, with about 50 percent of the total commercial LPG allocation dedicated to these sectors, the official statement added.
The ministry acknowledged that while the supply of LPG remains a concern due to the ongoing geopolitical situation, domestic LPG production from refineries has increased, and panic bookings have declined. Most deliveries are being facilitated via Delivery Authentication Code (DAC).
“No instances of fuel shortages have been reported at retail outlets by Oil Marketing Companies. The Government continues to advise the public against panic buying, stating that there are sufficient stocks of petrol and diesel available and that supplies are consistently managed,” it reiterated.
All refineries are functioning at optimal capacity with adequate crude inventories. The government confirmed that the country maintains sufficient stocks of petrol and diesel.
Point of View
This decision by the government reflects a proactive approach to ensure stability in fuel supply for crucial sectors, particularly as panic buying begins to decline. The allocation increase aims to support economic activities and public services in a challenging geopolitical landscape.
NationPress
9 May 2026
Frequently Asked Questions
What is the new commercial LPG allocation percentage?
The government has increased the commercial LPG allocation to 50%, including an additional 20% for essential sectors.
Which sectors are prioritized for LPG allocation?
Prioritized sectors include restaurants, hotels, industrial canteens, and hospitals, among others.
Why was the allocation increased?
The allocation was increased to stabilize supply amid decreasing panic bookings and to support essential services.
How much LPG has been uplifted recently?
Approximately 13,479 MT of LPG has been uplifted by commercial entities in the last week.
What measures are being taken to ensure LPG supply?
The government is managing supplies effectively and has advised against panic buying, ensuring adequate stocks of petrol and diesel.
