The government has restored liquefied petroleum gas (LPG) supplies to commercial consumers such as hotels and other businesses to levels prevailing prior to the West Asia crisis, and lifted sector-specific restrictions imposed in the wake of the conflict.
Further, the supply of bulk LPG, which had been suspended in the wake 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.
To augment domestic LPG production during the crisis, the government had issued orders under the Essential Commodities Act requiring C3 (propane)/C4 (butane) streams to be utilised exclusively for LPG production, diverting them from petrochemical and other downstream uses.
Taking note of the improved domestic LPG production and the projected availability of imported supplies, the government has also decided to reduce the diversion of C3/C4 streams to the LPG pool.
The enhanced allocation of these streams for non-LPG uses will be implemented while ensuring that the domestic LPG availability remains unaffected and aggregate indigenous production is maintained at not less than 40 TMT per day.
The Centre for High Technology under the Petroleum Ministry has been directed to issue organisation-wise allocation of the enhanced C3/C4 streams for the petrochemical and other critical sectors, and submit regular reports.
Amid global supply disruptions arising from the crisis in West Asia, which accounts for 90 per cent of India’s cooking gas imports, the government had accorded the highest priority to ensuring uninterrupted availability of LPG to domestic consumers. In line with this, temporary restrictions were imposed on the supply of commercial packed LPG.
Timely policy interventions and coordinated efforts by oil marketing companies (OMCs) helped maintain stable supplies despite challenging global supply chains.
The government has directed 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 OMCs for better monitoring and operational coordination.
At the same time, the government says it is committed to expanding piped natural gas (PNG) connectivity. Commercial and bulk consumers who have already shifted to PNG will continue to use it.
Eligible LPG consumers having access to piped gas, or those in the process of shifting, will be progressively transitioned to the PNG network.
