The Ministry of Petroleum and Natural Gas has made an important announcement for commercial LPG consumers. Amid the prolonged gas crisis, the government has decided to increase the states’ commercial gas quotas by an additional 20 per cent. This decision, effective March 23, 2026, will bring the total allocation to 50 per cent of the pre-crisis level.
Who will benefit from the additional gas?
In a letter written by Dr Neeraj Mittal, Secretary of the Ministry of Petroleum, to the Chief Secretaries of all states and union territories, it has been clarified who will receive the first benefit of this additional 20 per cent gas. The government has selected specific sectors as priorities.
These include public restaurants, roadside eateries, hotels, industrial canteens, and food processing (dairy) units. Additionally, subsidised canteens and community kitchens run by state governments or local bodies will also receive priority in gas supply. Keeping in mind the needs of migrant workers, the supply of 5 kg FTL cylinders will also be ensured. The Ministry has also strictly instructed state governments to take concrete steps to prevent gas black marketing or diversion.
The allocation quota reaches 50% quota.
It is important to understand the context of this new announcement. During the gas crisis, states were allocated only 20 per cent of commercial LPG. Subsequently, in an order issued on March 18, 2026, an additional 10 per cent quota was granted to states that implemented ease-of-doing-business reforms for PNG expansion.
The government hopes that states have adopted these reforms and are benefiting from 30 per cent of the gas. Now, with the new 20 per cent quota effective March 23, the total supply will reach 50 per cent of the previous level, which is expected to reduce the commercial gas shortage in the market significantly.
If you want gas, you’ll have to comply with these two strict conditions.
The government has certainly provided relief by increasing the quota, but it has also imposed some mandatory rules. To receive commercial gas under the 50% quota, all commercial and industrial gas consumers must register with the oil marketing companies (OMCs). These companies will be responsible for maintaining a complete database of customers, including the gas usage area and the customer’s annual gas requirement.
Moving towards PNG is essential.
The most important and far-reaching condition relates to piped gas. The letter clarifies that no commercial or industrial consumer will be eligible for this increased LPG quota unless they apply for piped natural gas (PNG).
Business people will not only have to apply for a PNG connection with their city’s gas distribution company, but also complete all necessary technical preparations to receive the gas. It is clear from this decision that, to address the gas crisis, the government wants to shift commercial consumers from traditional LPG cylinders to the PNG network as soon as possible.
