Central Government Increases Commercial LPG Quota; Hotels and Restaurants to Get Priority

Amidst the looming shadows of war in West Asia, the Central Government has provided a significant boost to the commercial sector. The Narendra Modi led government has increased the quota for commercial LPG cylinders by 20% for all states and union territories, effective from Monday, March 23, 2026. This decision, communicated by Petroleum and Natural Gas Secretary Neeraj Mittal via a letter to state Chief Secretaries on Saturday, aims to stabilize supply after disruptions caused by tensions in the Strait of Hormuz involving Iran, the US, and Israel. With this move, the total allocation will now reach approximately 50% of pre-crisis levels, focusing primarily on supporting small and medium-sized food businesses.The Ministry has issued strict directives to state governments to ensure that the additional 20% quota is distributed to specific sectors without any deviation. Like Hospitality & Dining(Restaurants, dhabas, hotels, and canteens),
Food Industry( Food processing units and dairies),
Public Welfare(Subsidized canteens/outlets run by state or local bodies and community kitchens),
Migrant Support(5kg FTL (Free Trade LPG) cylinders specifically for migrant workers).
While the government recently claimed that LPG supply for essential services such as households, hospitals, and educational institutions—remained normal, this latest update marks the first major relief for the commercial sector.