LPG curbs lifted as West Asia supply situation improves

The government has lifted all restrictions on non-domestic packed LPG supplies and partially restored bulk LPG distribution after improvements in global supply conditions. The move follows easing tensions in West Asia and is expected to provide significant relief to industrial and commercial consumers

New Delhi: In a major relief to industrial and commercial LPG consumers, the government on Thursday removed all sectoral restrictions on the supply of non-domestic packed LPG and restored supplies to the levels prevailing prior to the West Asia crisis.

The restrictions have been lifted due to improved indigenous LPG production and the projected availability of imported LPG cargoes following the US-Iran peace agreement and the opening of the Strait of Hormuz, according to a statement issued by the Ministry of Petroleum and Natural Gas.

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Further, the supply of bulk LPG, which had been suspended at the onset of the crisis, has been relaxed by 50 per cent of the pre-crisis consumption levels, providing significant relief to commercial and industrial consumers. The restoration follows the recent improvement in the LPG supply situation, the statement said.

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

The government has now also decided to reduce the diversion of C3/C4 streams to the LPG pool.

However, the enhanced allocation of C3-C4 streams for non-LPG uses will be implemented while ensuring that the domestic LPG availability remains unaffected and aggregate indigenous LPG production is maintained at not less than 40,000 metric tonnes per day, the statement said.

The Centre of High Technology under the Ministry has been directed to issue organisation-wise allocation of these enhanced C3/C4 streams for the petrochemical and other critical sectors and submit regular reports to the ministry.

Since the onset of global supply disruptions arising from the West Asia crisis, the government has accorded the highest priority to ensuring the uninterrupted availability of LPG to domestic consumers across the country. In line with this, temporary restrictions were imposed on the supply of commercial packed LPG. The timely policy interventions and coordinated efforts by oil marketing companies (OMCs) helped maintain stable supplies despite challenging global supply chains, the statement observed.

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

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

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

The decision reflects the government’s conscious approach towards ensuring national energy security while balancing the energy needs of the nation with its continued commitment to expanding access to cleaner, safer, and more efficient fuels, the statement added.