Centre hikes commercial LPG allocation to 50%, restaurants and food processing to be given priority
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The Union government on Saturday allowed an additional 20% allocation of commercial liquefied petroleum gas to states and Union Territories, taking the overall allocation to 50%.
Of the total amount, an allocation of 10% will be given on the condition that states undertake measures to ease the expansion of the piped natural gas network.
The Ministry of Petroleum and Natural Gas said that the additional 20% allocation will be given on priority “to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by State Govt or local bodies for food, community kitchens, 5 kg FTL [free trade LPG] for migrant labourers”.
Energy supplies to India have been disrupted since the conflict in West Asia broke out on February 28. Since the hostilities began, Iran has blocked the Strait of Hormuz – through which about 20% of global petroleum liquids consumption passes – for most commercial ships.
Due to the disruption, the Centre had initially curtailed the supply of LPG to commercial establishments, and had prioritised domestic supplies. Subsequently, the government had restored a commercial allocation of 20%, and had proposed the additional allocation of 10% subject to states undertaking reforms for the expansion of piped gas.
The Ministry of Petroleum and Natural Gas on Saturday acknowledged that LPG supply remains a concern because...