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Union Govt Increases Commercial LPG Allocation to 50% Amid Supply Recovery

The Centre raised commercial LPG allocation to 50% of estimated needs for restaurants, hotels, and labourers due to a 40% rise in domestic LPG production, officials said.

  • On Saturday, the Centre approved an additional 20% commercial LPG allocation to states and Union Territories, raising availability to 50% for restaurants, dhabas, hotels and related sectors.
  • After a three-week Middle East conflict disrupted supplies, the government cut commercial LPG to prioritise household LPG consumers, while refiners were directed to maximise LPG production, raising domestic output 40% above pre-war levels.
  • Under new rules, commercial and industrial LPG consumers must register with Oil Marketing Companies and apply for piped natural gas to be eligible for commercial LPG from the overall 50% allocation.
  • Restaurants, dhabas, hotels, industrial canteens, food processors, dairy facilities, and government-run kitchens gain cushioning from extra LPG, while migrant labourers get 5-kg refill priority amid 13,479 metric tonnes supplied and no dry-outs at 2,500 LPG distributorships.
  • With incentives and directives, states and CGD companies are pushing a rapid PNG rollout as PNGRB urged outreach, 20 states issued directives, and over 1.25 lakh new connections plus 5,600 consumer shifts occurred.
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Ommcom News broke the news in Bhubaneswar, India on Saturday, March 21, 2026.
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