NEW DELHI: The Centre has increased gas allocation to states and Union Territories to 50 per cent of pre-crisis levels, with an additional 20 per cent supply to be implemented from March 23, according to a communication from the ministry of petroleum and natural gas.In a letter to all State and UT Chief Secretaries, Petroleum Secretary Dr Neeraj Mittal said the enhanced allocation aims to support key sectors, particularly those linked to food supply and public welfare.“I wish to now inform you that w.e.f 23.3.26 till further notification, another 20% is being allotted to the State, which would take the overall allocation to 50% of the pre-crisis level. The additional allocation of 20% shall be given on priority to the following sectors: restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by state governments or local bodies for food, community kitchens, 5kg FTL for migrant labourers, along with measures to ensure no diversion…,” the letter read.The ministry said priority sectors for the additional allocation include restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidised canteens run by state governments or local bodies, community kitchens and 5kg free trade LPG for migrant labourers.“The additional allocation of 20% shall be given on priority to the following sectors – restaurants, dhabas, hotels, industrial canteen, food processing/dairy, subsidised canteens / outlets run by state governments or local boides for food, community kitchens, 5kg FTL for migrant laborers along with measures to ensure no diversion.”It also said all commercial and industrial LPG consumers must register with oil marketing companies before becoming eligible for allocation under the 50 per cent supply.“All commercial / industrial LPG consumers shall have to register with OMCs before they can be eligible to be allotted any commercial LPG from the overall 50% allocation. OMCs shall register such customers and keep a record of the sector they operate in the end-use of LPG and annual weight requirement of LPG of that customer in respective database(s).”Further, such consumers will be required to apply for piped natural gas connections with the city gas distribution entity in their respective areas and take steps to be ready for PNG supply to qualify for LPG allocation.“All commercial / industrial LPG consumers shall have to apply for PNG with the City Gas Distribution entity in their city as applicable and take all actions that will take them to a State of readiness for receiving PNG before they can be eligible to be allotted any commercial LPG from the overall 50% allocation.”India’s weekly LPG imports fell to 265,000 tonnes in the week to March 19, from 322,000 tonnes on March 5. West Asia inflows declined to just 89,000 tonnes in the week to March 19, the lowest share since Jan 2026, according to S&P Commodities At Sea (CAS).The report, however, added that alternative regional supplies increased to 176,000 tonnes, largely from the US, in the week to March 19, up from zero the previous week when West Asia accounted for 100% of imports.The report said Indian oil marketing companies are likely to import 2.2 million tonnes of LPG from the US in 2026. CAS data added that US LPG loadings destined for India are increasing, with volumes now surpassing those from traditional Gulf suppliers. India imports nearly 60% of its LPG requirement and about 90% of it comes from West Asia.
