Relief For Maharashtra Hotels, Restaurants As Commercial LPG Quota Hiked

In a move aimed at easing supply pressures on Maharashtra's food service and allied sectors, the Centre has approved an increase in the commercial liquefied petroleum gas (LPG) allocation for the state to 50 per cent of levels that were before the war broke out in the Middle East.

The additional allocation, an extra 20 per cent supply over the current rate, has taken effect from today and remains in place until further notice, according to a communication issued by the Ministry of Petroleum and Natural Gas to all chief secretaries.

Previously, commercial LPG supplies had been capped at around 30 per cent of the levels seen before the global energy disruption. 

Relief For Hotels, Restaurants, Food Sector

The expanded quota is expected to offer significant relief to hotels, dhabas, restaurants, industrial canteens, food processing units and the dairy sector, which have struggled with limited LPG supplies amid ongoing global energy market volatility linked to conflicts in the Middle East. 

Several restaurants and caterers in and around Mumbai, Thane and Navi Mumbai had reported disruptions over the past weeks, with some operations suspending kitchen services entirely due to a near-halt in commercial gas deliveries, industry sources said. 

A government official said, "The increased allocation will be prioritised for establishments that register with Oil Marketing Companies (OMCs) and those adopting piped natural gas (PNG) connections over bottled cylinders, a push aligned with longer-term energy transition goals in the state."

The decision comes as part of a broader central government initiative to raise LPG supplies nationwide, with authorities lifting commercial quotas to half of pre-crisis levels to support key economic activities. This includes targeted prioritisation of the hospitality and food sectors, which are considered critical for employment and economic stability.

Industry Representatives Welcome Move

Nitin Virani, a city-based LPG distributor, said, "This is a relief, but on-ground challenges persist. There are delays and shortages despite policy changes. It has forced businesses to reduce operations or resort to alternative cooking methods. We hope the extra volume reaches the dealers promptly." 

Officials believe that the quota increase, coupled with longer-term efforts to strengthen supply chains and encourage PNG adoption, should help stabilise commercial LPG availability over the coming months.