LUCKNOW, March 23 -- As the Centre has increased the supply of commercial gas allocation to states, they will be receiving LPG up to 50 percent of pre-crisis levels from Monday (March 23). This includes a fresh 20% increase over the earlier allocation, which had already been raised in phases for states improving business reforms and expanding piped natural gas (PNG) infrastructure. The decision follows an earlier allocation of 20%, along with an additional 10% granted on March 18 under reforms linked to ease of doing business. With the latest increase of another 20%, the states, including Uttar Pradesh, are now expected to fully utilise the cumulative allocation, subject to compliance with specified conditions. Officials say the move aims to ease fuel supply constraints for key sectors. Under the new rules, commercial and industrial users-such as restaurants, hotels, and factories-must apply for PNG connections through local city gas distribution companies. If they do not take steps towards switching, they could lose access to LPG supplies even within the increased quota. Businesses are also required to register with oil companies, sharing details about their operations. This will help the government track usage and identify which sectors can quickly move to PNG.Priority supply for key sectors To avoid disruption, the government will still prioritise LPG supply for essential services during the transition. These include restaurants, hotels, dhabas, industrial canteens, food processing and dairy units, government-run kitchens and community meal programmes, migrant workers (through small 5 kg cylinders) etc. According to Sanjay Bhandari of the Indian Oil Corporation, linking LPG supply to PNG readiness shows the government's larger plan-moving away from cylinder-based fuel towards pipeline gas, which is cleaner and easier to manage. LPG (liquefied petroleum gas) is not directly extracted but produced as a by-product of crude oil refining and natural gas processing. It mainly consists of propane and butane and has a higher calorific value. PNG, on the other hand, is natural gas delivered through pipelines and is composed largely of methane (85-95%). While its calorific value is lower, it provides a steady and continuous heat supply. From a consumer standpoint, LPG requires upfront payment for a full cylinder-typically costing between Rs.800 and Rs.1,100-whereas PNG is metered with users billed monthly based on actual consumption. In many cities, PNG rates range between Rs.40 and Rs.60 per unit, making it more manageable for high-usage households. India's LPG demand has surged over the past decade, driven largely by Pradhan Mantri Ujjwala Yojana (PMUY). However, domestic production has not kept pace. According to Petroleum Planning and Analysis Cell (PPAC) data for the first half of FY 2025-26, India produced 6,219 TMT of LPG against a consumption of 16,200 TMT. To bridge this gap, the country imported 10,731 TMT-about 62% of total demand. Notably, LPG imports are heavily concentrated in West Asia, increasing vulnerability to regional disruptions....