Government restores commercial LPG supplies to pre-crisis levels; Withdraws sectoral restrictions

In a major relief to industrial and commercial LPG consumers, 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.

The Ministry of Petroleum and Natural Gas said in a statement that the supply of bulk LPG, which had been suspended at the onset of the crisis, has now been restored to 50 per cent of pre-crisis consumption levels, providing significant relief to commercial and industrial consumers. The restoration follows the recent improvement in the LPG supply situation.

The government has also decided to reduce the diversion of C3-C4 streams to the LPG pool. During the West Asia crisis, 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 to augment domestic LPG production.

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 government has directed Oil Marketing Companies to continue maintaining comprehensive data on commercial and industrial LPG consumers to facilitate efficient planning and supply management. It has reiterated its commitment to expanding Piped Natural Gas (PNG) connectivity. The Ministry said commercial and bulk consumers who have already shifted to PNG will continue to remain on PNG. Eligible LPG consumers with 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 entities.