Government restores non-domestic LPG supply to pre-West Asia crisis levels

The government has removed all sectoral restrictions on the supply of Non-Domestic Packed LPG and restored supplies to the levels prevailing before the West Asia crisis, in a move that brings relief to industrial and commercial consumers. It has also relaxed the suspension on bulk LPG supply by allowing supplies up to 50% of pre-crisis consumption levels.

The restoration follows an improvement in the LPG supply situation. During the West Asia crisis, the government had placed the highest priority on ensuring uninterrupted LPG availability for domestic consumers across the country, and temporary restrictions had been imposed on commercial packed LPG supplies as part of that effort.

To augment domestic LPG production during the crisis, the government had issued orders under the Essential Commodities Act requiring C3-C4 streams to be used exclusively for LPG production, diverting them from petrochemical and other downstream uses.

With indigenous LPG production improving and imported LPG cargoes projected to be available, the government has now decided to reduce the diversion of C3-C4 streams to the LPG pool. The enhanced allocation of C3-C4 streams for non-LPG uses will be implemented while ensuring that domestic LPG availability remains unaffected and aggregate indigenous LPG production is maintained at not less than 40 TMT per day.

The Centre of High Technology under the ministry has been directed to issue organisation-wise allocation of the enhanced C3-C4 streams for the petrochemical and other critical sectors and to submit regular reports to the ministry. The government said timely policy interventions and coordinated efforts by Oil Marketing Companies (OMCs) helped maintain stable supplies despite challenging global supply chains.

The government has also directed OMCs to continue maintaining comprehensive data on commercial and industrial LPG consumers to support efficient planning and supply management. A unified sectoral database will be maintained across the OMCs to strengthen monitoring and operational coordination.

At the same time, the government said it remains committed to expanding PNG connectivity. Commercial and bulk consumers who have already shifted to Piped Natural Gas will continue on PNG, while other eligible LPG consumers with access to the PNG network, or those in the process of shifting, will be progressively transitioned to PNG in coordination with City Gas Distribution entities.

In this regard, the Secretary in the Ministry of Petroleum and Natural Gas has written to the Chief Secretaries of all states and Union Territories to ensure smooth implementation of the revised supply arrangements.

The revised supply measures restore Non-Domestic Packed LPG to pre-crisis levels, partially resume bulk LPG supply, and ease the diversion of C3-C4 streams, while retaining the focus on domestic LPG availability, data-based supply management and the shift of eligible consumers to PNG.