India Increases Gas Supply Amid Ongoing Shortages

In response to a significant gas shortage affecting multiple sectors, the Indian government has announced an increase in gas supply allocations. The Ministry of Petroleum and Natural Gas stated that gas allocations to states have been raised to 50 percent of pre-crisis levels. Furthermore, an additional 20 percent increase is set to commence on March 23, 2026.

This measure is aimed at supporting crucial sectors, including hospitality and food services, which have been particularly impacted by the current situation. Petroleum Secretary Neeraj Mittal elaborated that this increased allocation is designed to assist sectors including restaurants, hotels, and community kitchens.

According to an official letter sent to Chief Secretaries of all states and Union Territories, the increase in supply will prioritize several areas: restaurants, hotel canteens, food processing units, and subsidised food outlets. The letter emphasised the importance of ensuring that the allocation does not get diverted away from the intended recipients.

"I wish to now inform you that from March 23, an additional 20% is being allotted to the State, which would take the overall allocation to 50% of the pre-crisis level," Mittal noted in his correspondence. He further highlighted that the additional allocation would be specifically channelled to certain sectors that require immediate support, reflecting the government's focus on public welfare.

In light of the ongoing impact of a conflict in the Middle East, which has disrupted energy supplies to India, the government previously limited LPG supplies to commercial establishments to prioritise households. However, with recent improvements in domestic gas production, the government has been able to restore some allocations.

The Ministry has also stated that all industrial and commercial LPG consumers are required to register with oil marketing companies to qualify for the allocation under the enhanced supply levels. Significant declines in panic bookings of LPG cylinders have also been reported, signalling some return to normalcy.

Authorities are urging consumers to avoid making panic purchases and rely on established delivery services. The government's proactive stance includes encouraging a shift towards piped natural gas for commercial enterprises, enhancing overall supply stability in the future. All refineries in India are reportedly operating at full capacity, with no shortages reported at petrol and diesel retail points.

States and Union Territories have also been instructed to remain vigilant against gas hoarding and black market activities, with over 3,500 inspections leading to numerous seizures of LPG cylinders. The situation continues to evolve as the government takes steps to stabilise supply and meet the needs of both commercial and individual consumers.