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India Allocates 20% LPG to Curb Hoarding
12 Mar
Summary
- 20% of average monthly commercial LPG will be allocated by OMCs.
- Regulation aims to prevent hoarding and black marketing of gas.
- A committee assessed genuine needs across geographies and sectors.
To address the ongoing LPG crisis in India, oil marketing companies (OMCs) will now allocate 20 percent of the average monthly commercial LPG requirement. This new regulation, effective from today, aims to prevent hoarding and black marketing of essential cooking gas. The initiative was announced in Lok Sabha by Union Minister for Petroleum and Natural Gas Hardeep Singh Puri.
Minister Puri clarified that the regulation is specifically designed to deter illicit practices rather than penalize the hospitality sector. He explained that commercial LPG is typically sold in an open, deregulated market at prevailing prices without government subsidies. However, in a supply-constrained environment, this open structure can unfortunately lead to hoarding and resale at inflated prices.
A three-member committee, formed on March 9, 2026, from IOCL, HPCL, and BPCL, has been actively engaged with state civil supply departments and restaurant associations nationwide. This committee has worked to assess the genuine needs of various sectors and geographical areas, ensuring that available commercial LPG is prioritized for legitimate users.
