Will Govt hike commercial LPG quota? Will hotels and industries receive relief?
The impact of the gas crisis, triggered by the Iran-Israel conflict, is being felt across the entire country. Taking a significant step regarding the supply of commercial Liquefied Petroleum Gas (LPG), the Central Government has decided to increase the quota allocated to states by up to 50 percent.
Neeraj Mittal, Secretary of the Union Ministry of Petroleum and Natural Gas, has conveyed this information to the Chief Secretaries of all states. This decision will be implemented in accordance with the inputs provided by the respective state governments.
Under the new policy, an additional 20 percent quota has now been sanctioned—over and above the initial 20 percent quota previously allocated to states and the subsequent 10 percent increase granted on that basis.
Hotels, Eateries, and Industries to Benefit
The quota increase will primarily benefit restaurants, dhabas (roadside eateries), hotels, industrial canteens, food processing industries, milk centers, and government-subsidized food centers. Additionally, priority has been accorded to the supply of 5-kilogram FTL (Free Trade LPG) cylinders, which are made available specifically for migrant workers.
Mandatory Registration
The government has also imposed certain conditions to avail of the benefits of this facility. It will be mandatory for all commercial and industrial LPG customers to register with the respective oil companies—specifically, India's Oil Marketing Companies (OMCs). The companies will scrutinize customers' annual consumption and records to prevent the misuse of gas.
In areas where Piped Natural Gas (PNG) facilities are available, consumers should apply for and utilize PNG services. This will help alleviate the fuel crisis within the commercial sector.