Commercial LPG curbs lifted
India on Thursday restored commercial LPG supplies to pre-West Asia war levels for hotels, restaurants and other businesses across the country. The Ministry of Petroleum and Natural Gas, in a statement on Thursday, said it had taken this step after an improvement in the LPG supply situation following disruptions caused by the US-Israel war on Iran, now on hold under a Memorandum of Understanding. The supply of bulk LPG, which was suspended at the onset of the crisis, has also been partially resumed at 50 per cent of pre-crisis consumption levels.
The restrictions were imposed after the West Asia conflict disrupted LPG supplies from the Persian Gulf, which accounts for about 90 per cent of India’s cooking gas imports.
To safeguard household consumption, the Government initially halted supplies of commercial LPG to hotels, restaurants and industrial users, diverting available volumes to domestic consumers.
Supplies were subsequently restored in phases to about 70 per cent of normal levels, although several sectors continued to face curbs of up to 50 per cent of their usual allocations as authorities sought to conserve fuel stocks amid concerns over import availability. Refineries were ordered to produce more LPG by diverting streams they would otherwise use for petrochemical production.
Crude oil prices have fallen back to pre-war levels, government crisis briefings have been suspended, and fuel supply concerns have receded as shipping and energy flows normalise.
The rollback of emergency restrictions underscores New Delhi’s confidence that domestic production and imports are sufficient to meet demand, reducing the need for crisis-era rationing measures that had affected industrial and commercial fuel users.
The ministry has also directed Oil Marketing Companies to continue maintaining comprehensive data on commercial and industrial LPG consumers to facilitate efficient planning and supply management.
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. 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 PNG. 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.
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.
