Government Restarts Commercial LPG Cylinder Supply to Ease Pressure on Hospitality Sector

The Ministry of Petroleum and Natural Gas has announced the resumption of commercial LPG cylinder distribution for industries in several states, offering relief to businesses affected by the recent cooking gas shortage.

Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) at the ministry, confirmed on Saturday that the government has decided to extend LPG supply to commercial consumers after reviewing the situation.

“Following detailed discussions, the government has decided that commercial consumers will also receive LPG supplies. Distribution of commercial cylinders has begun in multiple states and consumers have already started receiving them,” Sharma said.

Relief for Hospitality and Food Businesses

The decision is expected to support industries that rely heavily on commercial LPG, particularly the hospitality and food service sector, which has faced severe disruptions in recent days.

Many hotels, restaurants, and eateries had reported difficulties operating due to the shortage of commercial cylinders.

The Confederation of All India Traders (CAIT) had earlier urged the Madhya Pradesh government to restore at least a limited supply of commercial LPG to avoid a shutdown of businesses in Bhopal.

According to CAIT president Dharmendra Sharma, the situation could severely impact livelihoods if the supply crunch continued.

“If the situation persists for several more days, the hospitality and food service sector in Bhopal may face a complete shutdown, affecting thousands of workers and disrupting food services for residents,” he said.

Panic Booking Driving Demand Surge

Officials have also highlighted that panic booking has significantly increased demand for LPG cylinders.

Recent data shows that daily bookings have jumped from around 7.5–7.6 million to nearly 8.8 million, reflecting growing concerns among consumers.

The government has urged people to avoid panic booking and rely on the existing supply system.

Petrol and Diesel Supply Remains Stable

Sharma reassured that there is no shortage of petrol or diesel in the country. She noted that India has adequate crude oil supplies and that refineries are operating at full capacity.

“We produce sufficient petrol and diesel domestically to meet our requirements, and there have been no reports of stockouts at retail fuel outlets,” she said.

Alternative Gas Connections Being Promoted

To reduce pressure on LPG supply, the government is encouraging commercial establishments to shift to PNG (Piped Natural Gas) where available.

Gas Authority of India Limited (GAIL) has held discussions with city gas distribution operators, urging them to accelerate the rollout of PNG connections for eligible commercial consumers.

Digital Booking Encouraged

The ministry has also advised citizens to use digital methods for booking LPG cylinders, including IVRS, SMS, WhatsApp, and mobile apps provided by Oil Marketing Companies, instead of visiting distributors in person.

Officials stressed that oil companies will continue delivering cylinders directly to households, and there is no reason for consumers to panic.

Industry Still Concerned

While the resumption of commercial LPG distribution has been welcomed, industry representatives say the allocated supply may still fall short.

Reports indicate that around 20% of the average monthly commercial LPG demand has been allocated initially.

However, hotel and restaurant associations say this may not be sufficient for establishments that handle high-volume catering and food preparation.

Industry estimates suggest that nearly 30% of hotels and restaurants have temporarily shut operations due to the ongoing LPG shortage.

Authorities are now focusing on stabilising supply and ensuring that both domestic and commercial consumers receive adequate fuel in the coming weeks.