REGULATORY · MARKET STRUCTURE · INDIA
Centre doubles LPG allocation to commercial users to 40%
Change
The Centre doubled states' LPG allocation for commercial users to 40% of their previous consumption.
Why it matters
Household LPG deliveries were prioritised earlier, prompting a halt to commercial supplies. Commercial deliveries had been partially restored at 20% of previous consumption. The allocation for commercial users has been increased to 40% of previous consumption. The extra 20% is to be given on priority to restaurants, dhabas, hotels, industrial canteens, food-processing and dairy units, subsidised state/local canteens, community kitchens, and 5-kg free-trade cylinders for migrant labourers.
Implications
- · Eligible commercial and institutional users receive increased LPG volumes, rising from the previously restored 20% to 40% of prior consumption.
- · Additional volumes are earmarked for food-service, institutional catering, food-processing and dairy operators, and 5-kg free-trade cylinders for migrant labourers.
- · State allocation authorities and commercial LPG distributors face changed delivery obligations to match the revised allocation.
Who is affected
- · Food-service operators (restaurants, dhabas, hotels)
- · Institutional caterers (industrial canteens, subsidised/state-run canteens, community kitchens)
- · Food-processing and dairy operators
- · Migrant labourers receiving 5-kg free-trade LPG cylinders
Source
Topics
World & Politics Policy & Regulation Business & Markets Supply Chain & Logistics Energy & Power Oil & Gas