Chandigarh's Commercial Sector Gains from Renewed LPG Allocation
The central government has resumed the allocation of 70% LPG for non-domestic users in Chandigarh, with commercial establishments—especially hotels, bars, and restaurants—emerging as the main beneficiaries of this policy shift. This move comes as the Centre directs states and union territories to prioritize industries and industrial units, but Chandigarh's unique economic landscape has led to a tailored approach.
Focus on Food-Related Commercial Entities
Officials note that Chandigarh has limited industrial activity compared to other states, prompting the food and supplies department of the UT administration, in coordination with oil companies, to ensure the required supply of non-domestic LPG primarily to food-related commercial entities. Sources within the Chandigarh administration reveal that while the Ministry of Petroleum and Natural Gas has issued clear guidelines, several industrial categories listed by the ministry do not exist in the city.
"Therefore, the focus in Chandigarh remains on key commercial sectors such as hotels, restaurants, and eateries. At the same time, requirements of existing industrial units are also being closely monitored to ensure adequate supply," sources said. They added that officials are in regular contact with oil companies and their local representatives to ensure proper availability and regulated use of the permitted 70% LPG allocation for non-domestic users.
Push for Piped Natural Gas Expansion
In addition to ensuring seamless LPG supply, the ministry has directed the Chandigarh administration to give a significant push to piped natural gas (PNG), especially for non-domestic users. The UT has also been asked to assess the feasibility of expanding PNG pipeline infrastructure across the city. Sources indicate that state-level coordinators are in touch with oil companies to facilitate the expansion of PNG coverage.
However, non-domestic units that are completely dependent on LPG have been exempted from mandatory registration for PNG. UT sources confirm that oil companies have already initiated the process of registering non-domestic users for PNG, and the food and supplies department is coordinating with them to ensure compliance with central government guidelines.
Exemptions and Regulatory Framework
In a communication to the Chandigarh administration, the Ministry of Petroleum and Natural Gas stated that while applications for PNG connections through City Gas Distribution (CGD) entities are generally required to avail bulk LPG under the allocation, this condition will be waived for industries where LPG is an integral input in the manufacturing process or is used for specialized purposes that cannot be substituted by natural gas. The ministry also asked the UT administration to circulate the Natural Gas and Petroleum Products Distribution (Pipelines and Other Facilities) Order, 2026, among all concerned departments and bodies.
Domestic LPG Supply Remains Unaffected
Officials emphasize that domestic supply of LPG in Chandigarh is continuing as per routine. The UT has around three lakh domestic LPG connections, and no cuts have been made in supply. The food and supplies department is monitoring the situation in coordination with oil companies.
"Booking period for domestic LPG consumers is 25 days, and there has been no change in this timeline. Chandigarh is also not entitled to kerosene supply," an official said.
Why Food Joints Stand to Gain
- Chandigarh has limited industrial activity, unlike other states.
- Many industrial categories listed by the Centre do not exist in the city.
- UT administration has therefore prioritized commercial sectors, especially food-related units.
- Hotels, restaurants, bars, and eating joints are the city's largest non-domestic LPG consumers.
- Food and supplies department is coordinating with oil companies to ensure supply mainly to these outlets.
- Continuous LPG availability is seen as critical to daily operations of food businesses.
