The Centre has directed city gas distribution companies to prioritise piped natural gas (PNG) connections for commercial establishments and increased allocation of commercial LPG, as it moves to stabilise fuel supply amid disruptions caused by the West Asia conflict 2026.
In an update, the Ministry of Petroleum and Natural Gas said CGD entities have been advised to prioritise PNG connections for establishments such as restaurants, hotels and canteens to address concerns over the availability of commercial LPG.
“City Gas Distribution (CGD) entities have been advised by Govt. of India to prioritise PNG connections for commercial establishments such as restaurants, hotels and canteens across all their Gas, to address concerns regarding the availability of commercial LPG,” the ministry said.
The government has also asked central ministries and state authorities to expedite approvals related to gas infrastructure. “Govt. of India vide letter dated 19.03.2026 have requested all concerned Central Government Ministries to issue necessary directions... for immediate fast tracking and disposal of all pending and new permissions related to CGD infrastructure,” it said.
Also read: LPG crunch persists; supplies curbed for commercial users
Central government establishments have been encouraged to switch to PNG wherever feasible. “All Central Government establishments/Colonies/Officers/Canteens may also be advised to switch over to PNG wherever the same is available,” the ministry added.
To ease pressure on commercial users, the Centre has raised LPG allocation to states by an additional 20 per cent, taking the total allocation to 50 per cent. The additional supply will be prioritised for restaurants, dhabas, hotels, industrial canteens, food processing units and community kitchens.
The ministry said monitoring has been intensified to prevent hoarding and black marketing of LPG cylinders. “Raids continue to be carried out in many of the States/UTs to check the hoardings and black marketing of LPG. More than 3,500 raids have been conducted, and around 1400 cylinders have been seized in Uttar Pradesh, Telangana, Maharashtra etc.,” it said.
It added that all refineries are operating at high capacity with adequate crude inventories, and sufficient stocks of petrol and diesel are being maintained.
“No cases of fuel dry outs have been reported at any of the ROs by the Oil Marketing Companies,” the ministry said, advising consumers not to resort to panic buying.
The measures come amid disruptions in global energy flows following tensions in West Asia, including restrictions around the Strait of Hormuz, a key route for energy supplies.
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