Good news for dhaba and hotel owners: more gas cylinders are now available! Just have to agree to these government conditions
Amid the ongoing nationwide gas crisis, the Petroleum Ministry has announced significant relief. Commercial LPG supplies to states are being increased by 20% starting March 23, 2026. This will bring the total gas supply to half of its pre-crisis level, or 50%. This decision will be a significant relief for gas traders facing gas shortages.
The Ministry of Petroleum and Natural Gas has made an important announcement for commercial LPG consumers.
Amid the prolonged gas crisis, the government has decided to increase states' commercial gas quotas by an additional 20 percent. This decision, which will take effect on March 23, 2026, will bring the total allocation to 50 percent of pre-crisis levels.
Who will get the benefit of extra gas?
In a letter to the chief secretaries of all states and union territories, Petroleum Ministry Secretary Dr. Neeraj Mittal clarified who will receive the first benefit from this additional 20 percent gas. The government has prioritized specific areas.
These include public restaurants, roadside eateries, hotels, industrial canteens, and food processing (dairy) units. Furthermore, subsidized canteens and community kitchens run by state governments or local bodies will also receive priority gas supply.
Keeping in mind the needs of migrant laborers, the supply of 5-kg FTL cylinders will also be ensured. The Ministry has also issued strict instructions to state governments to take strict measures to prevent gas black marketing or diversion.
Allocation quota reaches 50% quota
It's important to understand the context of this new announcement. During the gas crisis, states were only allocated 20 percent of commercial LPG. Subsequently, in an order issued on March 18, 2026, an additional 10 percent quota was granted to states implementing ease-of-doing-business reforms for PNG expansion.
The government hopes that states have adopted these reforms and are reaping the benefits of 30 percent of the gas.
Now, with the addition of a new 20 percent quota from March 23, the total supply will reach 50 percent of the previous level, which is expected to significantly alleviate the shortage of commercial gas in the market.
If you want gas, you will have to accept these two strict conditions.
The government has certainly provided relief by increasing the quota, but it has also imposed some mandatory regulations. To receive 50% of the total commercial gas quota, all commercial and industrial gas consumers must register with oil marketing companies (OMCs).
These companies will be responsible for maintaining a complete database of customers, including the gas usage area and the customer's annual gas requirement.
It is necessary to move towards PNG
The most significant and far-reaching condition relates to piped gas. The letter clarifies that no commercial or industrial consumer will be entitled to this increased LPG quota unless they apply for piped natural gas (PNG).