Several States begin allocations of Commercial LPG for restaurants, hotels

Members of industry bodies such as the Federation of Hotel & Restaurant Associations of India and National Restaurant Association of India said this is a step in the right direction. 
| Photo Credit:
PERIASAMY M

After the Center’s dictat, States such as Delhi have begun making allocations for Commercial LPG to restaurants, hotels and eateries. Allocations to educational institutes, hospitals, railways and airports are being prioritised. Restaurant and hotel players are hoping more States would begin notifying similar distribution policies and mechanisms.

The Delhi Government has included restaurants and hotels among the priority sectors. The Delhi’s Department of Food, Supplies and Consumer Affairs, in compliance with the directions of the Ministry of Petroleum and Natural Gas, has released the distribution policy, informing that up to 20 per cent of the average daily commercial LPG cylinder consumption will be made available for regulated distribution by Oil Marketing Companies (OMCs), which will be roughly around 1,800 cylinders.

Largest sectoral share

Restaurants and eateries, accounting for the largest sectoral share, have been placed at the third level of priority with 42 per cent allocation (762 cylinders). At priority 4, hotels, hospitality units, guest houses and trusts will be allocated 4 per cent (72 cylinders). Meanwhile, dairies, bakeries and sweet shops have been kept at Priority 5 with 11 per cent allocation (200 cylinders).

Meanwhile, the Ministry of Petroleum & Natural Gas on Sunday said that the commercial LPG cylinders have been placed at the disposal of State Governments for priority distribution and are now available to consumers in 30 States and UTs. It added that several States and UTs, including Bihar, Delhi, Haryana and Rajasthan have issued orders for allocation of non-domestic LPG in line with Government guidelines.

Members of industry bodies such as the Federation of Hotel & Restaurant Associations of India and National Restaurant Association of India said this is a step in the right direction. Pradeep Shetty, Vice-President, FHRAI said, “ We are hopeful all States will follow mechanisms and policies for distribution of Commercial LPG to hotels and restaurants. This will give some respite to the restaurant and hotels industry, which is coping with the paucity of the Commercial LPG.”

Published on March 15, 2026