The Central Government has removed restrictions on the supply of commercial LPG cylinders, allowing restaurants, hotels, caterers, and wedding organisers to purchase cylinders according to their operational requirements. The decision, announced by the Ministry of Petroleum and Natural Gas, is expected to ease fuel availability for commercial establishments and large social events. While commercial supply has been fully restored, the government has clarified that restrictions on new domestic LPG connections remain unchanged.

The move comes as businesses, particularly those in the hospitality and event management sectors, had been facing difficulties in securing sufficient LPG cylinders due to earlier supply limits. The revised policy takes immediate effect and is expected to streamline operations during the busy wedding and festive seasons.

Commercial LPG Supply Restored

According to the ministry's latest order, the previous restrictions on the distribution of commercial LPG cylinders have been withdrawn. Hotels, restaurants, banquet halls, catering services, and wedding organisers will now be able to procure cylinders based on actual demand without seeking special approvals.

The government has also partially relaxed restrictions on bulk industrial LPG, permitting industries to receive up to 50% of their pre-March consumption levels.

Relief for Wedding Industry

The decision is expected to provide significant relief to the wedding and hospitality sectors, which often require large numbers of commercial cylinders during peak event seasons.

Earlier, organisers in states such as Rajasthan were required to obtain approval from the District Supply Officer to receive commercial LPG cylinders for wedding functions. In many cases, the number of cylinders approved was limited, creating logistical challenges for large gatherings.

With the revised guidelines, this approval process has been discontinued, enabling organisers to arrange fuel supplies more efficiently.

Oil Companies Directed to Build Consumer Database

The Ministry of Petroleum and Natural Gas has instructed the country's three public sector oil marketing companies—Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL)—to develop comprehensive region-wise databases of commercial and industrial LPG consumers.

The ministry has also directed companies to continue supplying Piped Natural Gas (PNG) to commercial consumers who have already transitioned from LPG, ensuring efficient fuel management across sectors.

Commercial LPG Prices Remain High

Although supply restrictions have been lifted, commercial LPG prices remain significantly higher than they were at the beginning of the year.

In Rajasthan, a 19-kg commercial LPG cylinder is currently priced at ₹3,141. The price has risen sharply through multiple revisions during the year. From ₹1,608 at the end of December, the cylinder price has nearly doubled after six successive increases between January and June.

Industry representatives believe that while unrestricted availability will improve operations, the elevated fuel costs will continue to impact restaurants, hotels, and catering businesses.

What It Means

The government's latest decision is expected to reduce operational hurdles for businesses that rely heavily on commercial LPG. Event organisers, hotels, and food service establishments will now have uninterrupted access to fuel supplies without administrative approvals, improving service delivery during periods of high demand.

However, households awaiting new domestic LPG connections will not benefit from this announcement, as existing restrictions on new domestic connections remain in place.