Delhi Govt caps commercial LPG supply at 20% amidst shortage

As cooking gas becomes harder to procure, hotels are being forced to switch to firewood stoves and reduce food items in their menus. The Delhi Government issued an order on Saturday, capping the daily regulated distribution of commercial LPG cylinders at roughly 20 per cent of the city's average consumption.

In another order, the Ministry of Petroleum and Natural Gas (MoPNG) on Saturday said consumers with Piped Natural Gas (PNG) connections will no longer be allowed to retain, obtain or refill domestic LPG cylinders under an amended supply order.

The directive follows instructions from the MoPNG and intends to ensure that essential services continue to receive fuel amid the escalating military conflict between Iran and the US that has put international supply routes in distress.

“In compliance with the directions of the MoPNG, Government of India, to make available up to 20 per cent of the average daily commercial LPG cylinder consumption in Delhi, and in coordination with the three Oil Marketing Companies, the Delhi Government has issued a detailed policy note for distribution of commercial cooking gas during the present scarcity situation,” reads the order.

“Delhi typically records a daily sale of around 9,000 commercial LPG cylinders (19-kg equivalent). Under the new system, approximately 1,800 cylinders per day will be distributed through a priority-based allocation mechanism coordinated with the three oil marketing companies (OMCs),” said the order issued by the Department of Food, Supplies and Consumer Affairs.

Under the distribution framework, sectors have been classified into eight priority categories. Educational institutions, hospitals, railways and airports have been placed in the highest priority bracket and will be supplied up to 100 per cent of their requirement due to the essential nature of their services,” the order said, adding that government departments and public sector institutions operating canteens fall under the second priority category.

Restaurants and eateries, which represent one of the largest commercial consumers, have been allotted the largest share at 42 per cent of the regulated supply. Under the policy, hotels, hospitality units and guest houses have been assigned a smaller quota, while dairies, bakeries and sweet shops also feature among the higher consumption categories.

Caterers and banquet halls, along with sectors such as dry cleaning, packaging units, pharmaceutical units and sports facilities, have been included in subsequent priority groups.

“Supplies will be strictly based on booking requests made by consumers through the respective OMC systems. Where immediate delivery is not possible, distribution will follow a first-in-first-out system,” the order said.

Officials said these alternatives could help ease pressure on commercial LPG demand. It will remain in effect during the current period of supply constraints, with authorities monitoring distribution and demand patterns across sectors, the order added.

Meanwhile, the Ministry of Petroleum and Natural Gas on Saturday issued an order that anyone who has a Piped Natural Gas (PNG) connection, along with a domestic LPG connection, is not permitted to retain the LPG connection or obtain refills from any Government oil company or its distributors.