The Indian Government has approved an additional allocation of commercial liquefied petroleum gas (LPG) to its states to manage supply disruptions linked to the ongoing West Asia conflict.
In a statement, the Indian Ministry of Petroleum and Natural Gas said it has allowed another 20% allocation of commercial LPG to all states. This would take the overall allocation to 50%, including an earlier 10% increase to support the transition to piped natural gas (PNG).
The additional allocation will be prioritised for essential and high-consumption segments, including restaurants, roadside eateries (dhabas), hotels, industrial canteens, food processing units and dairy units.
The support will also be extended to subsidised canteens and outlets operated by state governments, local bodies and community kitchens.
Additionally, the statement added that 20 states and union territories have already issued orders to allocate non-domestic LPG in line with the Government of India guidelines.
In the remaining states and union territories, public sector oil marketing companies are supplying commercial LPG cylinders.
The government's move comes as restaurants continue to report supply constraints amid the conflict.
Local financial daily The Hindu Business Line reported that despite directions from the government to the states to allocate LPG to the restaurant industry, many states have been unable to do so, leading to a severe shortage.
The government also acknowledged that LPG supply remains an area of concern due to the prevailing geopolitical situation. However, it said there have been no reports of stock-outs at LPG distributorships on the domestic front.
In a post on X, the National Restaurant Association of India (NRAI) thanked the Indian Government for the increase in allocation. It also referenced the Delhi government’s action to allow a 42% LPG supply to restaurants.
The association, however, highlighted that restaurants in other states are still facing shortages.
“The industry employs 8.2 million people — we urge the Central Government to extend this support across all states and recognise restaurants as essential,” NRAI said in the post.
