CHENNAI: In a move to ease supply constraints in key sectors, the Ministry of Petroleum and Natural Gas has increased the allocation of commercial LPG to 50% of pre-crisis levels, with an additional 20% supply set to take effect from Monday.
The decision, communicated by Petroleum secretary Neeraj Mittal, is conditional on states and Union Territories implementing reforms to promote the expansion of Piped Natural Gas (PNG) under the ease-of-doing-business measures.
The enhanced allocation is intended to support sectors that have been facing supply disruptions. The ministry has directed that priority be given to the hospitality segment, including restaurants, dhabas, hotels and industrial canteens. Community kitchens and subsidised canteens run by state governments and local bodies have also been brought under the public welfare category.
In the industrial segment, food processing units and dairy plants have been identified for priority allocation. Additionally, 5 kg Free Trade LPG cylinders will be supplied to migrant workers, with safeguards put in place to prevent diversion.
To access the additional allocation, the Centre has mandated strict compliance requirements. All commercial and industrial consumers must register with oil marketing companies, which will maintain detailed databases covering sector classification, end use and annual consumption.
Eligible consumers are also required to apply for PNG connections through City Gas Distribution entities. Businesses must demonstrate readiness to transition to PNG infrastructure to qualify for the increased LPG supply.