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.
Further, the supply of bulk LPG, which had been suspended at the onset of the crisis, has been relaxed to 50 percent 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.
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.
Taking note of the improved indigenous LPG production and the projected availability of imported LPG cargoes, the government has also 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 the domestic LPG availability remains unaffected and aggregate indigenous LPG production is maintained at not less than 40 TMT per day.
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 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.
Govt remains committed to expanding PNG connectivity
At the same time, the government remains committed to expanding PNG connectivity. Commercial and bulk consumers who have already shifted to PNG will continue to remain on PNG.
In this regard, the Secretary, Ministry of Petroleum and Natural Gas, has written to the chief secretaries of all states and union territories to ensure the 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.
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.
