LPG boost for hotels, canteens

The Union Government on Saturday increased the allocation of commercial LPG by an additional 20 per cent bringing up the total allocation to 50 per cent. The additional allocation will be subject to commercial establishments registering with Oil Marketing Companies (OMC) and applying for Piped Natural Gas (PNG) connection, according to a letter written by the oil secretary to States.
“The additional allocation of 20 per cent shall be given on priority to the following sectors — restaurants, dhabas, hotels, industrial canteen, food processing/dairy, subsidised canteens/outlets run by State Governments or local bodies for food, community kitchens, 5kg FTL for migrant laborers along with measures to ensure no diversion,” the letter read.
Earlier, the Government had offered an additional 10 per cent, subject to states expediting PNG projects.
OMCs are to register such customers and keep a record of the sector they operate in the end-use of LPG and annual weight requirement of LPG of that customer in respective database(s).
The letter further stated that no fuel shortages have been reported at retail outlets, and the public has been advised against panic buying. Natural gas supplies to priority segments, including domestic PNG and CNG transport, are being fully maintained, while industrial consumers are receiving about 80 per cent of their usual supply.
Meanwhile, refiners in India have started contemplating buying Iranian oil after US on Saturday removed sanctions on Iranian oil at sea. Refiners are awaiting Government directions and clarity from Washington on details such as payment terms etc.
On Friday, US Treasury Secretary Scott Bessent permitted the sale of Iranian oil currently stranded at sea, reversing Washington’s longstanding policy. Explaining the move, Bessent said the step is intended to inject additional supply into global markets.













