Amid the ongoing shortage of liquified petroleum gas (LPG) in the country due to the war between the US, Israel, and Iran, the government on Wednesday said that it has offered all states and Union Territories an additional 10 per cent allocation of commercial LPG, provided they can help in the long-term transition from LPG to PNG (piped natural gas).
Sharing the details, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said that one per cent additional allocation will be provided for the formation of State and District level committees for the approval of CGD applications and resolving grievances. Similarly, a two per cent additional allocation will be done for issuing orders to grant deemed CGD permissions.
"Three per cent additional allocation for introducing the 'Dig and restore scheme' for CGD entities and four per cent additional allocation for reducing the annual rental/lease charges," Sharma said.
LPG issue remains worrisome
Sharma also said that the LPG issue remains worrisome; however, there has been an improvement in online booking.
"More than 2300 surprise inspections carried out by OMCs on 17.03.2026. 30 states have established their State Control Rooms, and 22 states have also operationalised District Control Rooms," she added.
CGD entities offering incentives
As part of the push, the government has encouraged consumers, particularly commercial LPG users in major cities and urban areas, to switch to PNG. Several city gas distribution (CGD) entities are offering incentives to boost PNG adoption, as authorities seek to reduce dependence on conventional LPG supplies during a period of global uncertainty. In a communication on Monday, the Centre has requested state governments and Union Territories to expedite approvals and remove procedural bottlenecks for laying CGD pipelines.
Alternate fuels such as kerosene and coal have been activated for certain sectors, including hospitality and restaurants, to ease pressure on LPG supplies.
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