Govt Restores Commercial LPG Supply to Pre-Crisis Levels

Sectoral restrictions lifted as improved domestic production and imports ease supply concerns

  • Government restores non-domestic packed LPG supply to pre-West Asia crisis levels.
  • Bulk LPG supply resumed at 50% of pre-crisis consumption.
  • Restrictions on C3-C4 allocation eased while protecting domestic LPG availability.
  • OMCs directed to strengthen monitoring as PNG transition continues.

GG News Bureau
New Delhi, 25th June: The Central Government has restored supplies of non-domestic packed LPG to pre-West Asia crisis levels, withdrawing all sectoral restrictions imposed earlier on commercial and industrial consumers following an improvement in the country’s LPG supply situation.

The Ministry of Petroleum and Natural Gas also announced that bulk LPG supplies, which had been suspended during the crisis, have been partially resumed at 50 per cent of pre-crisis consumption levels, providing significant relief to industrial and commercial users.

The restrictions were imposed during the West Asia crisis under the Essential Commodities Act, requiring C3-C4 hydrocarbon streams to be diverted exclusively for domestic LPG production to ensure uninterrupted household supplies.

With indigenous LPG production improving and imported cargo availability expected to remain stable, the Government has now reduced the diversion of C3-C4 streams to the LPG pool, allowing increased allocation for petrochemical and other critical industries while ensuring domestic LPG production remains above 40 thousand metric tonnes per day.

The Centre has directed the Centre for High Technology (CHT) to allocate the enhanced C3-C4 streams among eligible organisations and submit regular monitoring reports to the Ministry.

The Government said the temporary restrictions had helped maintain uninterrupted LPG supplies to domestic consumers despite disruptions in global supply chains caused by the West Asia conflict.

Oil Marketing Companies (OMCs) have also been instructed to maintain comprehensive databases of commercial and industrial LPG consumers to improve planning, monitoring and supply management through a unified sectoral database.

The Ministry reiterated its commitment to expanding the use of Piped Natural Gas (PNG), stating that commercial and bulk consumers already connected to PNG will continue using the cleaner fuel, while other eligible LPG consumers will be gradually shifted to PNG in coordination with City Gas Distribution entities.

The Petroleum Secretary has written to Chief Secretaries of all States and Union Territories to facilitate smooth implementation of the revised supply arrangements. The Government said the decision balances national energy security with the continued expansion of cleaner and more efficient fuel alternatives.