Govt restores commercial LPG supply to pre-West Asia crisis levels; eases restrictions

The move comes after the government reviewed the country's fuel availability and found that both domestic production and imported LPG supplies have improved.

In Short

• Centre restores non-domestic LPG supply to pre-West Asia crisis levels
• Restrictions on packed LPG for commercial users withdrawn
• Bulk LPG supply to industrial users resumed at 50% pre-crisis levels

Industrial and commercial users of liquefied petroleum gas (LPG) have received a major relief as the Centre has restored the supply of non-domestic packed LPG to the levels that existed before the West Asia crisis.

The move comes after the government reviewed the country's fuel availability and found that both domestic production and imported LPG supplies have improved. As a result, restrictions that had been imposed to protect household LPG supplies have now been withdrawn.

COMMERCIAL USERS TO RECEIVE FULL NON-DOMESTIC LPG SUPPLIES

The Ministry of Petroleum and Natural Gas, in a statement on Thursday, announced that all sector-specific restrictions on the supply of non-domestic packed LPG have been removed. This means hotels, restaurants, small businesses and other commercial users will once again receive supplies as they did before the crisis.

The government has also relaxed the suspension on bulk LPG supplies. Industrial and commercial consumers using bulk LPG will now receive up to 50% of their pre-crisis consumption, offering significant relief to several sectors that had been facing supply constraints.

WHY WERE THE RESTRICTIONS INTRODUCED?

The restrictions were introduced after the West Asia crisis disrupted global energy supplies and created uncertainty over LPG availability.

To make sure domestic households did not face any shortage, the government had directed that C3 and C4 hydrocarbon streams should be used only for producing LPG. These raw materials were temporarily diverted away from petrochemical and other industrial uses to increase LPG production.

The decision helped maintain uninterrupted cooking gas supplies for households across the country despite challenges in global supply chains.

PUSH FOR PNG WILL CONTINUE

Even as commercial LPG supplies return to normal, the government has reaffirmed its commitment to expanding the use of Piped Natural Gas (PNG).

Commercial and industrial consumers who have already shifted to PNG will continue using it. Businesses that have access to PNG networks, or are in the process of switching, will gradually be moved from LPG to PNG in coordination with City Gas Distribution companies.

The government believes this will improve energy efficiency while ensuring LPG remains available for consumers who need it most.

BETTER MONITORING OF COMMERCIAL LPG SUPPLIES

The government has also instructed Oil Marketing Companies (OMCs) to continue maintaining detailed records of commercial and industrial LPG consumers. A common database will be created across all OMCs to improve planning, monitoring and supply management.

The Petroleum Secretary has written to the Chief Secretaries of all states and Union Territories, asking them to support the smooth implementation of the revised supply arrangements.

BALANCING ENERGY SECURITY AND INDUSTRY NEEDS

The latest decision signals that the government is confident about the improving LPG supply situation. While protecting domestic cooking gas supplies remains the top priority, the restoration of commercial LPG supplies is expected to provide much-needed support to industries and businesses that depend on the fuel.

The government said it will continue balancing national energy security with the country's growing demand for cleaner and more efficient fuels, while expanding access to PNG wherever possible.

- Ends