LPG Gas: Major Relief for Hotels and Restaurants—Commercial Gas Quota Increased by 70%; Will Dining Out Become Cheaper?

The Central Government has provided significant relief to hotels and restaurants. According to information received from IANS, the government has, effective today, increased the allocation quota for commercial LPG cylinders to 70 percent of the total demand. Previously, this quota stood at 50 percent of the total demand.

This move is expected to provide relief to industries that rely heavily on LPG for their large-scale operations. Additionally, the government has stated that priority will be accorded to certain specific sectors.

Who Will Receive Priority?
According to information from IANS, within this 70 percent quota, priority will be given to labor-intensive sectors such as steel, automobiles, textiles, dyeing, chemicals, and plastics, as these sectors also provide support to other essential industries. Within these sectors, priority will be accorded to process industries—or those industries that require LPG for heating purposes and for which natural gas cannot serve as a viable alternative.

The government order states that, in addition to the current allocation of 50 percent, a further allocation of 20 percent is proposed; this will bring the total commercial LPG allocation up to 70 percent of the pre-crisis levels for packed non-domestic LPG.

Companies Must Complete These Steps
The government has clarified that to avail the benefit of this additional 20 percent allocation, all commercial and industrial LPG consumers must register with the Oil Marketing Companies and apply for PNG (Piped Natural Gas) connections with the respective City Gas Distribution entities in their cities.

Previously, under the additional 20 percent allocation announced on March 21, priority was accorded to sectors such as restaurants, *dhabas* (roadside eateries), hotels, industrial canteens, food processing/dairy units, subsidized canteens/outlets operated by state governments or local bodies, community kitchens, and the 5 kg (Free Trade LPG/FTL) category catering to migrant workers. According to the latest data from the Ministry of Petroleum, more than 37,000 5-kg FTL cylinders have been sold to migrant workers as of March 25. The distribution of LPG cylinders will be carried out by state governments and district officials, based on priority areas or at the discretion of the consumers themselves.

Meanwhile, Iran has indicated that it will allow more Indian vessels carrying LPG to pass through the Strait of Hormuz. This development follows discussions held by the Government of India with Iranian authorities regarding this issue.

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