Centre withdraws sectoral restrictions on non-domestic packed LPG supply and restores availability to pre-West Asia crisis levels, easing pressure on industrial and commercial consumers.
The Government of India has withdrawn restrictions imposed on the supply of non-domestic packed Liquefied Petroleum Gas (LPG) and restored allocations to levels that existed before the West Asia crisis, providing relief to commercial and industrial consumers across the country.
The decision follows an improvement in domestic and imported LPG availability after months of supply management measures introduced to safeguard household consumption during global energy market disruptions. Alongside the restoration of commercial LPG supplies, the government has also reinstated bulk LPG availability to 50% of pre-crisis consumption levels.
During the West Asia crisis, the government had directed that C3-C4 hydrocarbon streams be used primarily for LPG production under provisions of the Essential Commodities Act. The move diverted feedstock away from petrochemical and other downstream industries to ensure uninterrupted LPG supplies for domestic consumers.
With indigenous LPG production improving and imported cargo availability projected to remain stable, authorities have now decided to reduce the diversion of C3-C4 streams to the LPG pool. The revised allocation is expected to support petrochemical and other critical industries while maintaining adequate LPG supplies for households. The government has specified that aggregate indigenous LPG production should not fall below 10 million metric tonnes annually.
The Ministry of Petroleum and Natural Gas has directed the Centre of High Technology (CoHT) to implement sector-wise allocation of the enhanced C3-C4 streams and provide regular reports to the ministry.
Officials noted that temporary restrictions on commercial LPG were introduced to prioritise domestic consumers during the period of global supply disruptions. Coordinated efforts by Oil Marketing Companies (OMCs) helped maintain household LPG availability despite challenges in international supply chains.
The ministry has also instructed OMCs to continue maintaining detailed data on industrial and commercial LPG consumers. A unified database across OMCs will be used to strengthen supply planning, monitoring and coordination.
The government further clarified that commercial and bulk consumers already connected to Piped Natural Gas (PNG) networks will continue using PNG. Eligible LPG consumers with access to PNG infrastructure are expected to transition gradually in coordination with City Gas Distribution entities.
Source: This article is based on an official press release issued by the Press Information Bureau (PIB), Ministry of Petroleum & Natural Gas, Government of India
Press Release Page | Press Information Bureau
