India's oil marketing companies allocate 20% of commercial LPG
Change
India's oil marketing companies started allocating 20% of the average monthly commercial LPG requirement to genuine commercial users from today, in coordination with state governments.
Why it matters
Commercial buyers can no longer purchase unlimited LPG at the point of sale and will be restricted to allocated volumes, closing a route for hoarding and bulk resale. Procurement teams that rely on spot cylinder purchases must obtain assessed allocations through state supply channels or face local supply shortfalls.
Implications
- • Procurement teams at restaurants, hotels, and commercial kitchens must register their assessed monthly LPG requirements with their state civil supply department to secure allocated volumes or risk running short on cylinders.
- • Oil marketing companies' sales and distribution teams must implement and document the 20% commercial allocation and coordinate with state civil supply departments to block bulk over-the-counter sales beyond allocated volumes or risk continued diversion and black marketing.
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