Good News for Dhaba and Hotel Operators: You Will Now Receive More Gas Cylinders! You Just Need to Comply with This Government Condition..

The Ministry of Petroleum and Natural Gas has made a significant announcement for commercial LPG consumers. Amidst a prolonged gas crisis, the government has decided to implement an additional 20 percent increase in the commercial gas quota allocated to the states. Following this decision—which comes into effect on March 23, 2026—the total allocation will now reach 50 percent of pre-crisis levels.

Who Will Benefit from the Additional Gas Supply?
In a letter addressed to the Chief Secretaries of all states and Union Territories, Dr. Neeraj Mittal, Secretary to the Ministry of Petroleum, clarified exactly who would receive priority access to this additional 20 percent gas allocation. The government has identified specific sectors to be prioritized.

These include establishments catering to the general public, such as restaurants, roadside eateries (dhabas), hotels, industrial canteens, and food processing (dairy) units. Furthermore, subsidized canteens and community kitchens operated by state governments or local bodies will also be accorded priority in gas supply. Keeping the needs of migrant workers in mind, the supply of 5-kg FTL (Free Trade LPG) cylinders will also be ensured. The Ministry has also issued strict directives to state governments to take robust measures to prevent the black-marketing or diversion of gas supplies.

Allocation Quota Reaches 50%
It is also essential to understand the context behind this new announcement. During the gas crisis, states were being allocated only 20 percent of their commercial LPG quota. Subsequently, in an order issued on March 18, 2026, an additional 10 percent quota was granted to states that had implemented 'Ease of Doing Business' reforms aimed at facilitating the expansion of PNG (Piped Natural Gas) networks. The government anticipates that these states have successfully adopted these reforms and are currently utilizing the benefit of a 30 percent gas allocation. With the addition of a new 20 percent quota effective March 23, the total supply is set to reach 50 percent of its previous levels; this is expected to significantly alleviate the shortage of commercial gas in the market.

Two Strict Conditions Must Be Met to Obtain Gas

While the government has certainly provided relief by increasing the quota, it has also implemented certain mandatory regulations alongside it. To access commercial gas under this 50 percent quota, all commercial and industrial gas consumers are required to register themselves with Oil Marketing Companies (OMCs). It will be the responsibility of these companies to compile a comprehensive database of their customers. This database will record the specific sector in which the gas is being utilized, as well as the customer's annual gas requirement.

**Transitioning to PNG is Imperative**

The most significant and far-reaching condition pertains to piped gas. The official directive explicitly states that no commercial or industrial consumer shall be entitled to this enhanced LPG quota unless they have applied for a Piped Natural Gas (PNG) connection.

Traders must not only apply for a PNG connection with their city's respective City Gas Distribution company but also complete all necessary technical preparations required to receive the gas supply. This decision clearly indicates that, in an effort to tackle the gas crisis, the government aims to transition commercial consumers away from traditional LPG cylinders and onto the PNG network as expeditiously as possible.

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