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Center’s big decision amid gas crisis, states will get 20% additional supply from March 23

by Pratik Tripathi
March 26, 2026
in India, News
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Center's big decision amid gas crisis, states will get 20% additional supply from March 23
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The Ministry of Petroleum and Natural Gas on Saturday announced that the Center has increased the allocation of gas to states to 50 per cent of the pre-crisis level, with an additional 20 per cent supply to be implemented from March 23.

In an official letter to chief secretaries of all states and union territories, Petroleum Secretary Neeraj Mittal said the increased allocation is aimed at supporting key sectors, especially those related to food supply and public welfare.

The letter read, “I wish to inform you that from 23.3.26 till further notice, an additional 20% is being allocated to the state, taking the total allocation to 50% of the pre-crisis level. The additional 20% allocation will be given on priority basis to the following sectors: restaurants, dhabas, hotels, industrial canteens, food processing/dairies, concessional canteens/outlets run by state governments or local bodies, community Kitchens, 5 kg FTL (foot-time limit) food supplies for migrant workers, as well as measures will be taken to ensure that there is no embezzlement of any kind.”

From March 23, an additional 20 per cent allocation will bring total supply to 50 per cent of pre-crisis levels. Preference will be given to 5 kg free LPG for restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, concessional canteens or outlets run by state governments or local bodies, community kitchens and migrant workers.

“The additional 20% allocation will be given to the following sectors on priority basis: restaurants, dhabas, hotels, industrial canteens, food processing/dairies, concessional canteens/outlets run by state governments or local bodies, community kitchens, 5 kg FTL (foot-time limit) for migrant workers and also measures will be taken to ensure that there is no manipulation,” the letter said.

The ministry stressed on implementing measures to prevent manipulation in supplies. All industrial and commercial LPG consumers will have to register with oil marketing companies (OMCs) to be eligible for allocation under 50 per cent supply. The OMC will maintain records of each consumer, including area, end use of LPG and annual LPG requirements.

The letter read, “All commercial/industrial LPG consumers will have to register with the OMCs before becoming eligible to receive commercial LPG from the total 50% allocation. The OMCs will register such customers and maintain a record of the area they serve and the annual weight requirement of LPG of that customer in the end use of LPG in the respective database.”

Further, these consumers will have to apply for natural gas connection by pipeline with the concerned city gas distribution unit and take all necessary steps to be ready for PNG supply before receiving commercial LPG under the total 50 per cent allocation.

“All commercial/industrial LPG consumers are required to apply for PNG with the applicable City Gas Distribution Unit in their city and take all necessary steps to be prepared to receive PNG, only then will they be eligible to receive commercial LPG from the total 50% allocation,” the letter said.

The Ministry of Petroleum and Natural Gas on Friday said panic booking of LPG cylinders has dropped significantly, with only 55 lakh bookings recorded on Thursday.

The Government today held an inter-ministerial level briefing on the current situation related to the availability of essential commodities, especially fuel and gas, amid the ongoing geopolitical tensions.

Speaking at an inter-ministerial briefing today, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, highlighting the improvement in the LPG crisis, said, “There is no panic booking now. Only 55 lakh LPG bookings were recorded yesterday.”

Reassuring consumers, Sharma also said that there is no shortage of supply across the country. “Adequate stock is available, no outlet is out of stock,” he said.

However, he acknowledged that concerns still remained. “The LPG issue is still a matter of concern,” he said.

Highlighting the change in consumer behaviour, Sharma said that many users are switching to piped gas. “75 lakh LPG customers are now using piped gas (PG),” he said.

Tags: gas crisisIndian governmentlpg cylinderPM ModiWest Asia war

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