NEW DELHI: In a move aimed at benefiting the food and hospitality industry, govt on Saturday announced a 20% additional quota of commercial LPG cylinders, taking the overall allocation to 50% of pre-conflict levels.The ministry of petroleum and natural gas said the additional allocation will be prioritised for restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidised canteens and outlets run by state govts and local bodies, and community kitchens. It will also strengthen the distribution of 5kg portable cylinders for migrant workers. The allocation will be available from Monday.Govt said entities availing commercial LPG cylinders will have to register with oil marketing companies, detailing end use of the gas, and must also register for piped gas connections to be eligible for the additional allocation.Hotel associations have estimated that nearly 30% of hotels and restaurants had to shut due to the shortage of LPG supplies, while many others reduced operating hours, cut down menus and restricted kitchen activity to conserve available stocks. Though govt maintained on Saturday that LPG supply remained a matter of concern amid geopolitical conditions, the decision to increase commercial allocation suggests the overall situation may have improved slightly. Till Thursday, 13,700 new piped gas connections had been issued over nearly a fortnight, while more than 7,300 consumers shifted from LPG to PNG since the beginning of the week. Following supply disruptions due to the military conflict in West Asia, govt had initially halted the sale of commercial cylinders and prioritised domestic LPG, besides ensuring supplies to hospitals and educational institutions. It later allowed 20% of the average monthly requirement for commercial and industrial users, leaving it to states to decide distribution priorities. On March 18, the ministry issued another order allowing an additional 10% allocation to states, subject to reforms and faster expansion of PNG infrastructure. Over 20 states and UTs have since issued orders to allocate non-domestic LPG in line with the guidelines. India imports nearly half of its LPG requirement, with about 90% sourced from West Asia. Apart from a deal with the US, it is also tapping countries such as Russia, Japan and Norway for supplies. In a letter to chief secretaries of states and UTs, petroleum secretary Neeraj Mittal said all commercial and industrial LPG consumers must register with oil marketing companies to be eligible for allocation from the overall 50% quota. “OMCs shall register such customers and keep a record of the sector they operate in, the end-use of LPG and the annual weight requirement… of that customer in the respective database(s),” Mittal said. He added that such consumers will also have to take necessary steps to demonstrate readiness for PNG before becoming eligible for additional LPG allocation.
