New Delhi: The Ministry of Petroleum and Natural Gas has increased the allocation of commercial LPG to states and Union Territories, allowing an additional 20% supply for priority sectors. With this decision, the total allocation of commercial LPG has now been raised to 50%, according to an official communication issued on Saturday.

The newly approved allocation, to be effective from March 23, will be given on priority to sectors such as restaurants, dhabas, hotels, industrial canteens, food processing units, dairy units, and subsidised canteens or outlets operated by state governments or local bodies. The supply will also support community kitchens and 5-kg Free Trade LPG cylinders meant for migrant labourers.

The ministry had earlier restored a partial supply of 20% commercial LPG to consumers. In addition, the Government of India had proposed a further 10% allocation to states based on ease-of-doing-business reforms related to the expansion of Piped Natural Gas (PNG) infrastructure. With the latest approval of another 20% allocation on March 21, 2026, the total supply has reached 50%, including the reform-linked quota.

According to the ministry, educational institutions and hospitals have been placed in the highest priority category, and nearly half of the total commercial LPG allocation is being directed to these sectors.

The government said that 20 states and Union Territories have already issued orders to distribute non-domestic LPG in accordance with the central guidelines, while in the remaining states and UTs, public sector oil marketing companies are supplying commercial LPG cylinders directly.

Official data shows that about 13,479 metric tonnes of commercial LPG has been lifted by commercial entities across states and UTs during the past week. DeshGujarat