Hotels, restaurants to get more LPG as Centre adds 20% more supply to states

The Centre, on Saturday, allowed an additional 20% allocation of commercial LPG to states, taking the total Centre-to-state supply of commercial LPG to 50% of the pre-crisis level.

The additional supply will be mainly for restaurants, dhabas, hotels and other commercial and industrial sectors. The additional allocation will come into effect from March 23, 2026, and will continue until further notice.

Neeraj Mittal, Secretary of the Ministry of Petroleum and Natural Gas, wrote to all State and UT Chief Secretaries informing them about the additional allocation and the conditions for availing it.

“I wish to now inform you that w.e.f 23.3.26 till further notification, another 20% is being allotted to the State, which would take the overall allocation to 50% of the pre-crisis level. The additional allocation of 20% shall be given on priority to the following sectors: restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by state governments or local bodies for food, community kitchens, 5kg FTL for migrant labourers, along with measures to ensure no diversion…,” the letter said.

The government said commercial and industrial LPG users will have to register with Oil Marketing Companies before they can receive LPG from the overall allocation.

Oil Marketing Companies will also record the sector of operation, end use of LPG and the annual LPG requirement of each customer.

Commercial and industrial LPG users will also have to mandatorily apply for PNG connections with the City Gas Distribution entity in their area and take steps to be ready to receive PNG before they become eligible for LPG from the additional allocation.