In a major relief for industrial and commercial LPG consumers, the Centre has removed all sectoral restrictions on the supply of Non-Domestic Packed LPG and restored supplies to pre-crisis levels as the tensions
in West Asia eased.
The US-Iran memorandum of understanding (MoU) aimed at ending the conflict has paved the way for the reopening of the Strait of Hormuz, a crucial maritime route that handles a significant share of India’s crude oil and LPG imports.
The Ministry of Petroleum and Natural Gas announced the decision on Thursday, citing improved domestic LPG production and better availability of imported LPG cargoes following a period of global supply disruptions triggered by tensions in West Asia.
As part of the easing measures, the government has also partially restored the supply of bulk LPG, which had been suspended at the height of the crisis. Bulk LPG supplies will now be permitted up to 50 per cent of pre-crisis consumption levels, offering significant relief to commercial and industrial users.
During the West Asia crisis, the government had invoked provisions under the Essential Commodities Act and directed that C3-C4 hydrocarbon streams be used exclusively for LPG production. The move diverted these feedstocks away from petrochemical and other downstream industries to ensure adequate domestic LPG availability.
With supply conditions improving, the government has now decided to reduce the diversion of C3-C4 streams to the LPG pool and increase allocations to petrochemical and other critical sectors.
According to the ministry, the enhanced allocation of C3-C4 streams for non-LPG uses will be implemented without affecting domestic LPG availability. Indigenous LPG production will continue to be maintained at a minimum of 40 thousand metric tonnes (TMT) per day.
The Centre has directed the Centre for High Technology (CHT) to issue organisation-wise allocations of the enhanced C3-C4 streams and submit periodic reports to the ministry.
The Ministry of Petroleum and Natural Gas said ensuring uninterrupted LPG supplies to domestic consumers has remained a top priority since the onset of the global supply disruptions.
“In line with this objective, temporary restrictions were imposed on the supply of commercial packed LPG. Timely policy interventions and coordinated efforts by Oil Marketing Companies (OMCs) helped maintain stable supplies despite challenging global supply chains,” the ministry said.
It added that the latest decision reflects the government’s balanced approach towards safeguarding national energy security while meeting the energy requirements of industries and businesses and continuing to expand access to cleaner and safer fuels across the country.
The relaxation of restrictions is expected to benefit a wide range of commercial establishments, including hotels, restaurants, manufacturing units and other industrial consumers that rely heavily on LPG for their operations.
