The government has announced an additional 20 per cent allocation of commercial liquefied petroleum gas (LPG) to states, bringing the total allocation to 50 per cent, as several businesses are hit by the recent cooking gas crisis.
The additional 20 per cent allocation should be prioritised for the sectors, namely, restaurants, dhabas, hotels, industrial canteen, food processing or dairy, subsidised canteens or outlets run by state governments or local bodies for food, community kitchens, 5kg free trade LPG (FTL) for migrant laborers.
The commercial users are required to apply for piped natural gas (PNG) with city gas distribution (CGD) company in their city to receive additional LPG, according to an order, dated March 21, by Ministry of Petroleum and Natural Gas (MoPNG).
The government had prioritised LPG for domestic consumers, while significantly cutting allocation for commercial users, on account of supply shortage amid the ongoing war in West Asia.
Initially, only 20 per cent of the average monthly requirement was allocated for commercial users. An additional 10 per cent was allocated to states that committed to reforms supporting transition to piped gas.
As per the latest order, all commercial and industrial LPG consumers need to register with oil marketing companies (OMCs) to be eligible for the additional 50 per cent 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),” the government said
Meanwhile, the commercial users also need to apply for PNG with the City Gas Distribution (CGD) company and undertake measures 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.
The government is urging consumers to shift to PNG for cooking gas as LPG supplies tighten due to the Iran war. India depends on imports for about 60 per cent of its domestic LPG requirements, with nearly 90 per cent sourced from West Asia.
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