Government Boosts LPG Allocation Amid Transition to PNG: What You Need to Know

The Indian government has announced a 10% increase in commercial LPG allocation for States and UTs to facilitate the transition to PNG. With domestic LPG production up by 40%, the Ministry of Petroleum assures that petrol and diesel supplies are stable, urging citizens against panic buying. The initiative includes incentives for businesses to switch to PNG, promoting cleaner energy solutions. This article delves into the details of the government's strategy and its implications for consumers and businesses alike.

By Narendra Chaudhary Mar 18, 2026, 19:10 IST

Government's New LPG Allocation Strategy

New Delhi: On Wednesday, the government revealed an additional 10 percent allocation of commercial LPG for States and Union Territories, aimed at facilitating the shift from LPG to PNG.

According to the Ministry of Petroleum and Natural Gas, all oil refineries across India are functioning at optimal capacity, with sufficient crude oil reserves. Domestic production of LPG has surged by approximately 40 percent.

The ministry's official statement emphasized that India has ample petrol and diesel production, eliminating the need for imports to satisfy local demand.

In light of the current geopolitical climate, LPG supply is being closely monitored. Deliveries of domestic LPG cylinders are proceeding as usual, with no reports of shortages at distribution points.

Online bookings for LPG have risen significantly, from 83 percent to 93 percent, while the coverage of Delivery Authentication Codes has increased from 53 percent in February to around 81 percent now, aimed at curbing diversion.

Additionally, the ministry has allocated 48,000 KL of kerosene to States and UTs as an alternative cooking fuel, urging these regions to identify distribution locations.

Regular supplies of petrol and diesel are being maintained, with no instances of fuel shortages reported by oil marketing firms.

Citizens are encouraged to avoid panic buying, as there are sufficient stocks available.

Priority sectors continue to receive guaranteed gas supplies, including full supply to domestic PNG and CNG transport, while industrial and commercial consumers are receiving regulated supplies at about 80 percent.

Commercial LPG users are being urged to transition to PNG, with hotels, restaurants, hospitals, and hostels able to obtain PNG connections from authorized City Gas Distribution (CGD) companies.

CGD firms such as IGL, MGL, GAIL Gas, and BPCL are providing incentives to encourage both domestic and commercial PNG connections.

The government is actively expanding the CGD network to promote the use of clean and efficient PNG, and businesses are encouraged to reach out to authorized CGD entities for connections. CGD companies have been instructed to ensure maximum gas supply to essential sectors like seed drying units and cold storage.