Centre Restores Commercial LPG Supplies

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In a significant relief for industrial and commercial consumers, the Central Government has restored supplies of non-domestic packed LPG to pre-crisis levels and withdrawn all sector-wise restrictions that were imposed during the West Asia crisis.

The government has also partially resumed bulk LPG supplies, allowing up to 50 per cent of pre-crisis consumption levels for commercial and industrial users. The decision comes amid an improvement in domestic LPG production and increased availability of imported LPG cargoes.

During the West Asia crisis, the Centre had diverted C3-C4 hydrocarbon streams exclusively for LPG production under the Essential Commodities Act to ensure uninterrupted domestic cooking gas supplies. With the supply situation now stabilising, the government has decided to reduce this diversion and allow greater allocation of these resources to petrochemical and other industrial sectors.

Officials said the revised arrangement will not impact household LPG availability, and indigenous LPG production will continue to be maintained at a minimum of 40 thousand metric tonnes per day.

The Centre has directed the Centre for High Technology (CHT) to oversee the enhanced allocation of C3-C4 streams to industrial users and submit regular monitoring reports. Oil Marketing Companies (OMCs) have also been instructed to maintain comprehensive data on commercial and industrial LPG consumers to improve supply planning and management.

At the same time, the government reiterated its commitment to expanding the use of Piped Natural Gas (PNG). Commercial and bulk consumers already connected to PNG networks will continue using the cleaner fuel, while other eligible consumers will be gradually shifted to PNG in coordination with City Gas Distribution companies.

The Ministry of Petroleum and Natural Gas has written to all states and union territories to ensure smooth implementation of the revised LPG supply arrangements.

The move reflects the government’s effort to balance energy security, industrial demand and uninterrupted domestic LPG availability while promoting cleaner and more efficient fuel alternatives.

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