States to get 20% more cooking gas amid LPG crisis:New system from Mar 23; priority to be given to dhabas, hotels

The Centre on Saturday, March 21, said it has increased the allocation of commercial LPG to States and Union Territories by a further 20%. This would now take the cumulative allocation of commercial LPG to 50% of pre-crisis levels, effective March 23, 2026, subject to specific conditions aimed at streamlining usage and accelerating the transition to piped natural gas (PNG). The additional 20% would be given with priority to sectors. In a communication addressed to all Chief Secretaries, Dr Neeraj Mittal noted that the latest 20% increase builds upon the existing 30% allocation, comprising an earlier 20% base allocation and an additional 10% granted through a letter dated March 18, 2026, linked to ease-of-doing-business reforms for PNG expansion. I am hopeful that the state has implemented all the reforms and is availing the entire 30% allocation available the statement read. Priority allocation for key sectors The newly sanctioned 20% allocation is to be prioritised for essential and high-dependency sectors. These include restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, as well as subsidised food outlets operated by state governments or local bodies. Community kitchens and 5 kg free trade LPG cylinders for migrant labourers are also covered. States have been directed to ensure strict safeguards against the diversion of LPG supplies. Mandatory registration with oil marketing companies Under the revised framework, all commercial and industrial LPG consumers must register with oil marketing companies (OMCs) to qualify for allocation within the 50% quota. OMCs will maintain detailed records of registered consumers, including their sector of operation, end-use of LPG, and annual consumption requirements, within designated databases. PNG application made compulsory The Centre has also made it mandatory for all commercial and industrial LPG consumers to apply for PNG connections with the relevant city gas distribution (CGD) entities. Consumers must complete all necessary steps to reach a state of readiness to receive PNG before becoming eligible for LPG allocation under the expanded quota. Dhabas, hotels and industrial canteens to get priority This additional 20% gas supply will be given priority to specific sectors. According to Dr Neeraj Mittal’s letter, it will mainly be supplied to restaurants, dhabas, hotels and industrial canteens. The government aims to reduce any impact on food services and the wider food industry.