The Delhi government has announced a new policy aimed at regulating the distribution of commercial LPG cylinders in response to ongoing scarcity in the national capital. This policy was issued on March 14 by the Department of Food, Supplies and Consumer Affairs, aligning with directives from the Union Ministry of Petroleum and Natural Gas. Under this new framework, approximately 1,800 cylinders, representing up to 20 percent of the average daily commercial LPG cylinder consumption in Delhi, will be allocated for regulated distribution via three Oil Marketing Companies (OMCs).

Sector-wise Allocation Parameters

The policy outlines a priority-based allocation system across eight distinct sectors. Educational institutions, hospitals, railways, and airports will receive Priority 1 status, entitling them to up to 100 percent of their daily requirements, limited to 11 percent of the overall allocation. This results in an approximate daily consumption of 200 cylinders for these sectors. Government and Public Sector Undertaking (PSU) institutions, along with canteens on their premises, fall under Priority 2, which provides them with a 13 percent allocation, equating to 236 cylinders.

Restaurants and eateries, which account for the largest share, are classified under Priority 3 with a 42 percent allocation of 762 cylinders. Hotels, hospitality units, guest houses, and trusts have been designated as Priority 4 with a 4 percent share, totaling 72 cylinders. Dairies, bakeries, and sweet shops rank at Priority 5, receiving 200 cylinders, while caterers and banquet halls are classified as Priority 6 with 162 cylinders. Dry cleaning, packaging, and pharmaceutical units hold Priority 7 status, receiving 18 cylinders, and sports facilities and stadiums are placed at Priority 8 with an allocation of 150 cylinders.

Distribution Mechanism and Supply Regulations

The policy stipulates that the daily cylinder quota will be distributed among the three OMCs according to their current market shares: Indian Oil Corporation (IOC) at 58 percent, Bharat Petroleum Corporation Limited (BPCL) at 27 percent, and Hindustan Petroleum Corporation Limited (HPCL) at 15 percent. The primary format for supply will be standard 19-kg cylinders, with exceptions made for certain Priority 1 institutions. Supply in 5-kg cylinders is not permitted, as this format is not part of the commercial supply chain.

Distribution will rely on booking requests from consumers, with a strict First-In-First-Out (FIFO) process for pending demands. To curb hoarding and ensure fair allocation, the daily supply quantity for each consumer will be determined based on their average daily usage recorded over the past three months in the OMC systems. The policy enforces sectoral caps as outlined in the allocation framework.

Enforcement and Compliance Measures

Joint enforcement teams, composed of personnel from the Food and Civil Supplies Department, Delhi Police, Legal Metrology Department, and the OMCs, will conduct regular inspections. Their focus will be to deter practices such as hoarding, illegal storage, under-weighing, and black marketing of LPG cylinders. Violations will be addressed under applicable laws, including the Bharatiya Nyaya Sanhita and the Essential Commodities Act, 1955.

As a measure to alleviate the pressure on the demand for commercial LPG, institutions have been advised to consider alternative cooking methods such as electric induction cooking and steam-based systems, alongside Piped Natural Gas (PNG) connections where feasible.

Public Awareness Initiatives

In an effort to maintain clarity and prevent misinformation, the Delhi government will disseminate daily bulletins on LPG cylinder availability. OMCs are required to promote awareness among consumers, encouraging them to refrain from panic booking and to report any incidents of illegal practices, such as hoarding and diversion of LPG supplies. The policy has received approval from the Competent Authority and may undergo reviews based on future supply-demand dynamics.

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