Centre Raises Commercial LPG Allocation To 50% Amid Ongoing Supply Crunch, Pushes Shift To PNG

Amid a continuing LPG crunch, the Centre on Saturday increased the allocation of commercial LPG to states and Union Territories by an additional 20%, taking the total supply to 50% of pre-crisis levels.

Priority Supply To Key Sectors

The fresh allocation comes over and above the earlier 30% supply comprising a base 20% and an additional 10% granted on March 18 and is to be distributed on a priority basis. Restaurants, dhabas, hotels, and industrial canteens will be the primary beneficiaries. The scheme also extends support to the food processing and dairy sectors, government-run subsidised canteens, and community kitchens.

Relief For Migrant Labourers

In a relief measure for migrant labourers, the Centre has also proposed the supply of 5 kg Free Trade LPG cylinders.

Conditions Imposed On Additional Supply

However, the additional allocation comes with conditions. States have been asked to ensure that priority sectors receive the extra supply. All commercial and industrial LPG users must register with oil marketing companies to be eligible.

Push Towards PNG Transition

The Centre has also used the opportunity to push a long-term shift to piped natural gas (PNG). Commercial and industrial LPG consumers will be required to apply for PNG connections with city gas distribution entities and move towards readiness for transition.

Only those taking steps towards adopting PNG will remain eligible for LPG supplies under the expanded allocation.