New Delhi, June 25, 2026: The Government has removed all sectoral restrictions on the supply of Non-Domestic Packed LPG and restored availability to pre-crisis levels, providing major relief to industrial and commercial consumers. The decision comes after improvement in the overall LPG supply situation.
The government has also relaxed restrictions on bulk LPG supplies, which were earlier suspended during the West Asia crisis. Bulk LPG consumers will now receive supplies at 50% of their pre-crisis consumption levels, helping ease pressure on businesses dependent on LPG.
Improved supply situation leads to policy relaxation
During the West Asia crisis, the government had taken emergency measures under the Essential Commodities Act to boost domestic LPG availability. C3-C4 streams were diverted exclusively towards LPG production by reducing their use in petrochemical and other downstream sectors.
With indigenous LPG production improving and expectations of increased imported LPG cargo availability, the government has now decided to reduce the diversion of C3/C4 streams into the LPG pool.
The enhanced availability of C3-C4 streams for non-LPG sectors will be implemented while ensuring that domestic LPG supplies remain unaffected and domestic production continues at a minimum level of 40 thousand metric tonnes per day.
Monitoring of industrial LPG supply
The Centre of High Technology under the Ministry of Petroleum and Natural Gas has been instructed to issue organisation-wise allocations of the additional C3/C4 streams for petrochemical and other critical sectors. Regular updates will also be submitted to the ministry to monitor the situation.
The government stated that uninterrupted LPG availability for households remained the top priority throughout the global supply disruptions caused by the West Asia crisis. Temporary restrictions on commercial packed LPG were introduced as part of efforts to maintain balance during the challenging period.
Focus on PNG expansion
The government has directed Oil Marketing Companies (OMCs) to continue maintaining detailed records of commercial and industrial LPG consumers for better planning and supply management. A unified database across OMCs will also support coordination and monitoring.
Meanwhile, the Centre reiterated its commitment to expanding Piped Natural Gas (PNG) connectivity. Commercial and bulk consumers who have already shifted to PNG will continue using the cleaner fuel source, while other eligible consumers with PNG access will gradually transition in coordination with City Gas Distribution companies.
The Ministry of Petroleum and Natural Gas has also written to state governments and Union Territories to ensure smooth implementation of the revised arrangements.
The decision reflects the government’s approach towards strengthening energy security while balancing national fuel requirements with the long-term shift towards cleaner and more efficient energy solutions.
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