The Ministry of Petroleum and Natural Gas has made an important announcement for commercial LPG consumers. Amid the long-running gas crisis, the government has decided to increase the commercial gas quota of states by an additional 20 percent. After this decision, which will come into effect from March 23, 2026, the total allocation will now reach 50 percent of the pre-crisis level.
Who will get the benefit of additional gas?
In the letter written by Dr. Neeraj Mittal, Secretary, Petroleum Ministry, to the Chief Secretaries of all the states and union territories, it has been made clear who will be the first to get the benefit of this additional 20 percent gas. The government has selected certain areas on the basis of priority.
These include restaurants connected to the common people, roadside dhabas, hotels, industrial canteens and food processing (dairy) units. Apart from this, concessional canteens and community kitchens run by state governments or local bodies will also be given priority in gas supply. Keeping in mind the needs of migrant laborers, supply of 5 kg FTL cylinder will also be ensured. The ministry has also given strict instructions to the state governments to take concrete steps to stop black marketing or diversion of gas.
Dr Neeraj Mittal, Secretary of the Ministry of Petroleum & Natural Gas, writes to all State/UT Chief Secretaries
“I wish to now inform you that wef 23.3.26 till further notification, another 20% is being allotted to the State, which would take the overall allocation to 50% of pic.twitter.com/lc6zHVnLC5
— ANI (@ANI) March 21, 2026
Allocation quota reached 50% quota
It is also important to understand the context of this new announcement. During the gas crisis, only 20 percent of commercial LPG was being allocated to the states. Subsequently, in an order issued on March 18, 2026, an additional quota of 10 percent was given to states implementing ease of doing business reforms for PNG expansion. The government hopes that the states have adopted these reforms and are enjoying the benefit of 30 percent gas. Now, with the addition of a new quota of 20 percent from March 23, the total supply will reach 50 percent of the old level, which is expected to reduce the shortage of commercial gas in the market to a great extent.
If you want gas, you will have to follow these two strict conditions
The government has definitely given relief by increasing the quota, but along with it it has also implemented some mandatory rules. To get commercial gas from the total 50 percent quota, all commercial and industrial gas consumers will have to register themselves with Oil Marketing Companies (OMCs). It will be the responsibility of these companies to prepare a complete database of customers. It will be recorded in which area the gas is being used and what is the annual gas requirement of that customer.
It is necessary to move towards PNG
The most important and far-reaching condition is related to piped gas. It has been clarified in the letter that no commercial or industrial consumer will be entitled to this increased LPG quota unless he applies for Piped Natural Gas (PNG).
Traders will not only have to apply for PNG connection with the City Gas Distribution Company of their city, but will also have to complete all the necessary technical preparations to get the gas. It is clear from this decision that the government wants to shift commercial consumers from traditional LPG cylinders to PNG network as soon as possible to deal with the gas crisis.