The Centre has increased gas allocations to states to 50% of pre-crisis levels, with an additional 20% supply set to come into effect from March 23, announced the Ministry of Petroleum and Natural Gas on Saturday. The hike in gas allocation comes amid rising tensions in West Asia and fears of supply disruptions via the Strait of Hormuz.
In an official letter to all State and Union Territory Chief Secretaries, Petroleum Secretary Neeraj Mittal stated that the enhanced allocation is aimed at supporting critical sectors linked to food supply and public welfare.
Advertisement
The additional supply will be prioritised for restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidised food outlets run by governments, community kitchens, and 5 kg free trade LPG for migrant workers.
Panic booking drops sharply
The Ministry of Petroleum and Natural Gas noted a significant easing of panic buying, with LPG bookings dropping to 55 lakh on Thursday.
Joint Secretary Sujata Sharma said no LPG outlets were running dry and highlighted a behavioural shift among consumers, with around 7.5 lakh users transitioning to PNG.
Reassuring consumers, Sharma also said that there is no shortage of supply across the country. “There is adequate stock available, no outlets are dry out,” she stated.
Measures to prevent diversion
The Ministry said safeguards will be put in place to ensure that the additional allocation is not diverted. All commercial and industrial LPG consumers will be required to register with oil marketing companies (OMCs) to access supplies under the revised allocation.
OMCs will maintain detailed records of consumers, including sector of operation, LPG usage, and annual requirements.
PNG shift made mandatory
The government has also made it mandatory for commercial and industrial consumers to apply for piped natural gas (PNG) connections through city gas distribution networks. Only those taking steps towards PNG adoption will be eligible for LPG allocation under the 50% quota.