REGULATORY · MARKET STRUCTURE · INDIA
Government increases commercial LPG allocation to 50%
Change
The government approved an additional 20 percentage-point allocation to commercial LPG, raising total commercial allocation to 50%.
Why it matters
The government increased commercial LPG allocation by 20 percentage points to a total commercial share of 50%. The enhanced allocation covers restaurants, hotels, industrial canteens, food processing units, community kitchens and subsidised food outlets, and includes targeted support for migrant workers. States will implement the allocation subject to commercial establishments registering with oil companies and applying for piped natural gas connections, according to a letter from the oil secretary to states. Officials reported domestic LPG supply as stable with no reported shortages at distributorships and normal delivery operations, and panic bookings have declined.
Implications
- · Restaurants, hotels, industrial canteens, food processors, community kitchens and subsidised food outlets will receive a larger share of domestic LPG allocations.
- · Commercial establishments must complete registration with oil companies and apply for piped natural gas connections to access the enhanced allocation.
- · Oil company distributors and state energy officials must process registrations and manage conditional allocation flows to commercial users.
Who is affected
- · Restaurants and hotels
- · Industrial canteens and food processors
- · Community kitchens and subsidised food outlets
- · Oil company distributors and state energy officials
Source
Topics
World & Politics Policy & Regulation Energy & Power Oil & Gas