Centre Lifts Cap, Doubles 5 Kg LPG Allocation for Migrant Workers Amid Supply Constraints

The Centre has doubled the allocation of 5 Kg Free Trade LPG (FTL) cylinders meant for migrant labourers, as per news reports. The revised quantity is based on the average daily supply recorded during March 2-3, 2026. 

This increase goes beyond the earlier 20% limit set under a March 21 directive. The decision has been communicated to states and Union Territories for implementation. 

Distribution Through States 

The cylinders will be supplied through state governments and their food and civil supplies departments. Distribution is to be carried out only for migrant workers, with support from public oil marketing companies (OMCs). 

States have also been advised to manage supply based on local demand and requirements. 

Earlier Supply Adjustments 

The latest revision follows a series of changes in commercial LPG allocation. On March 21, the government increased allocation to 50%, including an additional 20% supply. 

Priority sectors included restaurants, hotels, industrial canteens, food processing units, subsidised kitchens, and migrant worker usage. 

On March 27, allocation was further raised to 70% to support sectors such as textiles and chemicals. 

Supply Pressures and Global Context 

The changes come amid pressure on LPG availability linked to global energy disruptions. Tensions in West Asia, particularly around the Strait of Hormuz, have affected crude oil movement. 

The route handles a large share of global oil and gas shipments, influencing domestic fuel supply conditions. 

Sales and Availability Data 

As per news reports, the Government data show that around 6.75 lakh 5 Kg FTL cylinders have been sold since March 23. 

The oil ministry stated that states have reported no disruption in LPG supply for migrant workers and that availability remains stable. 

Oil marketing companies have indicated that 5 Kg cylinders are available through authorised distributors, subject to valid identification. 

Read More: Directorate General of Foreign Trade Revises Export Policy on Wood Briquettes Amid West Asia Supply Concerns! 

Conclusion 

The decision expands supply limits for 5 Kg LPG cylinders while retaining the existing distribution framework. Availability remains under monitoring as supply conditions evolve. 

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