REGULATORY · MARKET STRUCTURE · INDIA
Centre allocates 50% commercial LPG to States
Change
The government approved an additional 20% central allocation of commercial LPG to States and Union Territories, raising total central allocations to 50% of monthly commercial cooking-gas requirements effective 23 March 2026.
Why it matters
The Ministry of Petroleum and Natural Gas added 20% to prior central allocations, bringing cumulative central allocations for commercial LPG to 50% of pre-crisis monthly requirements. The allocation takes effect on 23 March 2026 and remains in force until further notification. The 50% figure reflects cumulative allocations from this and two previous directives. The allocation is linked to a consumer 'state of readiness' to start using piped natural gas (PNG) where applicable.
Implications
- · Central allocations will cover half of each State/UT's monthly commercial cooking-gas requirements, changing distribution entitlements for commercial LPG.
- · State and UT fuel-distribution planning and monthly supply schedules must account for the increased central allocation level.
- · Commercial LPG distributors and retailers will receive a larger share of supply via central allocations during the directive's duration.
- · Access to the increased allocation is conditioned on consumer readiness to transition to PNG where applicable.
Who is affected
- · State and Union Territory fuel-distribution authorities
- · Commercial LPG distributors and retailers
- · Commercial establishments using LPG (hotels, restaurants, institutional kitchens)
What to watch
- · Effective date: 23 March 2026
- · Duration: until further notification
Source
Topics
Law & Public Safety Regulatory Actions Energy & Power Oil & Gas