Govt to Allocate 20% LPG Supply to Commercial Units Amid Ongoing Shortage

The Indian government has announced that commercial establishments will receive 20% of their average monthly LPG requirement as supply disruptions continue to affect restaurants, corporate cafeterias and large-scale catering services across the country.

Petroleum Minister Hardeep Singh Puri informed the Lok Sabha that oil marketing companies (OMCs) will allocate the limited LPG supply in coordination with state governments to prevent hoarding and black marketing.

The move comes amid ongoing disruptions linked to the West Asia conflict, which has increased shipping and supply challenges affecting LPG distribution.

Government Restores Partial LPG Supply

According to the government, the allocation will start immediately to help commercial establishments maintain essential operations.

“In a major decision, 20% of the average monthly commercial LPG requirement will be allocated from today by OMCs, in coordination with the State Governments, so that there is no hoarding or black marketing,” Puri said in Parliament.

The measure aims to ensure that restaurants, hotels and institutional kitchens receive at least a portion of their required cooking gas supply.

Restaurants Allowed to Use Alternative Fuels

To ease pressure on LPG supplies, the government has also asked State Pollution Control Boards (PCBs) to temporarily allow eateries and hospitality businesses to use alternative fuels.

For the next one month, restaurants and catering establishments may use:

• Biomass pellets

• Refuse-derived fuel (RDF) pellets

• Kerosene

• Coal

These temporary relaxations are intended to help businesses continue operations during the supply disruption.

Restaurants and Corporate Cafeterias Hit

Despite these measures, the LPG shortage has already begun to affect restaurants, corporate campuses and food service providers.

Arshad Syed, Executive Director at Impresario Entertainment & Hospitality Pvt. Ltd, which operates restaurant chains like SOCIAL and Smoke House Deli, said the disruption has impacted operations across the industry.

“Wherever possible, we are also exploring operational adjustments, including electric cooking solutions, to ensure continuity in our kitchens,” he said.

Companies Reduce Cafeteria Services

Several large companies have reduced food options in their cafeterias due to the limited LPG supply.

At Infosys’ Pune campus, food vendors reportedly received reduced LPG allocations under the revised guidelines. As a result, cafeterias have started sourcing cooked food from external central kitchens while increasing the use of electrical appliances and biofuels.

Other companies including Bosch, Cisco and Tata Consultancy Services (TCS) have also simplified cafeteria menus.

Many locations are now offering basic meals such as:

• Sandwiches

• Salads

• Curd rice

• Poha

Work From Home Introduced in Some Offices

The supply disruption has even affected workplace operations.

HCLTech asked employees to work from home on March 12 and 13 as food vendors struggled to maintain cafeteria services.

Institutional catering companies are also rapidly adjusting operations to cope with the shortage.

Sanjay Kumar, CEO and Managing Director of Rassense, said the company is exploring alternative cooking methods such as boilers and induction equipment, while shifting menus toward steamed food items.

Catering and Event Industry Also Impacted

Corporate catering firms have started reducing dishes that require large amounts of cooking gas.

The Compass Group announced it will introduce “business continuity menus” that limit high gas-consuming items such as dosa and chapatis.

The LPG shortage has also begun to affect the events and hospitality sector, with catering companies adjusting menus and operations to manage limited fuel supplies.

Industry experts warn that continued disruptions in LPG availability could further impact restaurants, food services and large-scale catering operations across India.