New Delhi: Centre has restored Non-domestic LPG supply to pre-crisis levels by removing all sectoral restrictions on commercial packed LPG and partially resuming bulk LPG supplies following an improvement in the country’s fuel availability.
The government also relaxed the suspension on bulk LPG by restoring supplies to 50 per cent of pre-crisis consumption levels. The decision provides significant relief to industrial and commercial consumers affected during the West Asia crisis.
Earlier, the government had diverted C3-C4 streams exclusively for domestic LPG production under the Essential Commodities Act. As a result, petrochemical and downstream industries faced reduced allocations to ensure uninterrupted household LPG supplies.
Officials said improved indigenous production and higher imported LPG availability enabled the government to ease these restrictions without affecting domestic consumers.
Revised Non-domestic LPG policy boosts industry
The government has reduced the diversion of C3-C4 streams to the LPG pool. Consequently, more feedstock will become available for petrochemical and other critical industries. However, authorities will maintain indigenous LPG production at no less than 40 TMT per day.
The Centre has directed the Centre for High Technology to issue revised organisation-wise allocations for C3-C4 streams. Moreover, the agency will submit regular implementation reports to the Ministry.
During the supply disruption, Oil Marketing Companies maintained stable LPG supplies for domestic consumers through coordinated planning. Therefore, the government has asked OMCs to continue maintaining detailed data on commercial and industrial LPG users to improve future supply management.
In addition, a unified sectoral database will strengthen monitoring and operational coordination across all OMCs.
The government also reaffirmed its commitment to expanding Piped Natural Gas connectivity. Commercial and bulk consumers who have already shifted to PNG will continue using the cleaner fuel. Meanwhile, eligible LPG consumers with PNG access will gradually transition in coordination with City Gas Distribution entities.
The Secretary of the Ministry of Petroleum and Natural Gas has written to all State and Union Territory Chief Secretaries to ensure smooth implementation of the revised supply arrangements.
The government said the decision balances national energy security with industrial demand while continuing its efforts to promote cleaner and more efficient fuel alternatives.
