LPG supply in Delhi capped at 20% of avg daily consumption; restaurants get largest share of 42%, hospitals, schools get priority

The Delhi government has introduced a restriction on the daily supply of commercial LPG cylinders, limiting distribution to about 20 per cent of the city's average consumption. This decision follows instructions from the Ministry of Petroleum and Natural Gas and aims to ensure uninterrupted fuel supply for essential services amid international supply chain disruptions.

The Department of Food, Supplies and Consumer Affairs stated: “The average daily sale in the Delhi market by the three OMCs together is approximately 9,000 cylinders (19-kg equivalent). Accordingly, 20 per cent of the daily commercial sale, i.e., approximately 1,800 cylinders, shall be made available for regulated distribution.”

The allocation system divides sectors into eight priority categories. Educational institutions, hospitals, railways and airports have been given the highest priority and will receive up to 100% of their requirements. It said that Priority 1 sectors typically do not consume more than 200 cylinders per day but due to their essential nature they will be supplied up to 100 per cent of their requirement.

Government departments and public sector canteens fall into the second priority category. Restaurants and eateries, identified as major commercial LPG consumers, have been allotted the largest share at 42 per cent of the regulated supply. Hotels, hospitality units and guest houses have smaller quotas, while dairies, bakeries and sweet shops are also considered high-consumption sectors.

Other sectors such as caterers, banquet halls, dry cleaning services, packaging units, pharmaceutical manufacturers and sports facilities are placed in lower priority groups.

Here’s how the capping – out of 100 per cent, 1,800 units – has been done for the sectors:

• Priority 1: Educational institutions, hospitals, railways and airports – 11%, 200 units
• Priority 2: Government departments and public sector canteens – 13%, 236 units
• Priority 3: Restaurants and eateries – 42%, 762 units
• Priority 4: Hotels, hospitality units and guest houses, trusts – 4%, 72 units
• Priority 5: Dairies, bakeries and sweet shops – 11%, 200 units
• Priority 6: Caterers and banquet halls – 9%, 162 units
• Priority 7: Drycleaning, packaging and pharma units – 1%, 18 units
• Priority 8: Sports facilities, stadiums and others – 8%, 150 units

LPG supplies will be managed based on booking requests through the oil marketing companies' systems. Where immediate delivery is not possible, distribution will follow a first-in-first-out basis.

Officials said these measures could help ease pressure on commercial LPG demand. The cap will remain in effect throughout the current supply constraint period, with authorities monitoring distribution and demand closely.

The order said that the daily cylinder quota will be sub-divided among the three OMCs in proportion to their current market share for FY 2025-26, namely: 
IOC - 58%
BPCL - 27%
HPCL - 15%