Delhi Government Caps Commercial LPG Supply at 20%, Introduces Priority Allocation for Key Sectors

Delhi Government Implements Priority-Based LPG Cylinder Distribution

Date: Saturday, 14th March, 2026

In response to international supply route disruptions due to the escalating military conflict between Iran and the US, the Delhi government has issued a directive capping the daily regulated distribution of commercial LPG cylinders at approximately 20% of the city's average consumption.

The directive aims to ensure that essential services continue to receive fuel. According to the order issued by the Department of Food, Supplies and Consumer Affairs, approximately 1,800 commercial LPG cylinders (19-kg equivalent) will be distributed daily through a priority-based allocation mechanism coordinated with the three oil marketing companies (OMCs).

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Distribution Framework

The distribution framework has classified sectors into eight priority categories, with educational institutions, hospitals, railways, and airports placed in the highest priority bracket and supplied up to 100% of their requirement. Government departments and public sector institutions operating canteens fall under the second priority category.

Regulated Supply Allocation

• Educational institutions, hospitals, railways, and airports: 100% of their requirement
• Government departments and public sector institutions operating canteens: 100% of their requirement
• Restaurants and eateries: 42% of the regulated supply
• Hotels, hospitality units, and guest houses: smaller quota
• Dairies, bakeries, and sweet shops: higher consumption categories
• Caterers and banquet halls, alongside sectors such as dry cleaning, packaging units, pharmaceutical units, and sports facilities: subsequent priority groups

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Supply Mechanism

Supplies will be strictly based on booking requests made by consumers through the respective OMC systems. Where immediate delivery is not possible, distribution will follow a first-in-first-out system. The Delhi government will monitor distribution and demand patterns across sectors during the current period of supply constraints.