Daijiworld Media Network - New Delhi
New Delhi, Jun 25: The government on Thursday restored commercial LPG supplies to pre-crisis levels and removed sector-specific restrictions imposed during the recent West Asia conflict, citing improvement in domestic production and expected arrival of imported LPG consignments.
The Petroleum Ministry said supplies of non-domestic packed LPG to hotels, restaurants and other commercial users have been fully normalised. Bulk LPG supplies, which were suspended at the beginning of the crisis, have also been partially resumed.
“In a major relief to industrial and commercial LPG consumers, the government has removed all sectoral restrictions on the supply of non-domestic packed LPG and restored supplies to the levels prevailing prior to the West Asia crisis,” the ministry said.
It added that bulk LPG supplies have been relaxed to 50 per cent of pre-crisis consumption levels, providing relief to commercial and industrial consumers.
The restrictions were introduced after disruptions linked to the Iran conflict raised concerns over LPG imports from West Asia, which accounts for nearly 90 per cent of India’s cooking gas imports.
To ensure uninterrupted household supplies, the government had diverted LPG availability from commercial and industrial sectors towards domestic consumers.
Commercial LPG supplies were later restored in phases, reaching around 70 per cent of normal levels, while several sectors continued to face allocation limits.
As part of emergency measures, the government had directed refineries to increase LPG output by diverting C3 and C4 hydrocarbon streams from petrochemical production under provisions of the Essential Commodities Act.
The move affected refiners and petrochemical companies, including Reliance Industries, which had to reduce petrochemical production to increase LPG availability.
With supply conditions improving, the government has now eased the restrictions.
“Taking note of improved indigenous LPG production and the projected availability of imported LPG cargoes, the government has decided to reduce the diversion of C3/C4 streams to the LPG pool,” the ministry said.
It added that increased allocation of C3-C4 streams for non-LPG uses would be implemented while ensuring domestic LPG availability remains unaffected and indigenous LPG production stays above 40,000 tonnes per day.
The Centre for High Technology has been tasked with issuing revised allocations of C3/C4 streams to petrochemical and downstream industries and monitoring implementation.
The rollback comes amid easing pressure in global energy markets, with crude oil prices returning to pre-conflict levels, reduced fuel supply concerns and stabilised shipping and energy movements.
The ministry reiterated that uninterrupted household LPG supply remains the government’s top priority and directed oil marketing companies (OMCs) to maintain detailed databases of commercial and industrial consumers for better supply planning.
The government also reaffirmed its plan to expand the use of piped natural gas (PNG) among commercial and industrial consumers.
Commercial and bulk consumers already shifted to PNG will continue using the network, while eligible LPG users with access to PNG connections will gradually be transitioned in coordination with city gas distribution companies.
Petroleum Secretary has also written to chief secretaries of all states and Union Territories to facilitate implementation of the revised supply arrangements.