The Union government has withdrawn sectoral restrictions on the supply of non-domestic packed liquefied petroleum gas (LPG), restoring supplies to pre-crisis levels following an improvement in domestic production and import availability.
The restrictions were introduced during the West Asia crisis to safeguard domestic cooking gas supplies amid concerns over global supply disruptions. At the time, the government invoked the Essential Commodities Act to require C3-C4 hydrocarbon streams—used as feedstock for both LPG and petrochemical production—to be diverted exclusively for LPG manufacturing.
With the supply situation improving, the government has now decided to reduce the diversion of C3-C4 streams to the LPG pool, allowing a larger allocation for petrochemical and other downstream industries. However, it has stipulated that indigenous LPG production should not fall below 40 thousand metric tonnes (TMT) per day and that domestic LPG availability should remain unaffected.
The Centre for High Technology (CHT), an organisation under the ministry, has been directed to allocate the enhanced C3-C4 supplies among petrochemical and other eligible sectors and submit regular reports to the ministry.
According to the ministry, temporary restrictions on commercial packed LPG were imposed to prioritise uninterrupted supplies to domestic consumers during the period of global supply disruptions. It says coordinated action by oil marketing companies (OMCs) helped maintain household LPG supplies despite challenges in international supply chains.
The government has also directed OMCs to maintain comprehensive data on commercial and industrial LPG consumers and develop a unified sectoral database to improve supply planning and monitoring.
At the same time, the ministry has reiterated its policy of promoting the use of piped natural gas (PNG) for commercial users. Consumers who have already shifted to PNG will continue using it, while other eligible LPG consumers with access to PNG networks, or those in the process of switching, will be progressively transitioned in coordination with city gas distribution (CGD) entities.
The secretary of the MoPNG has written to the chief secretaries of all states and Union Territories (UTs) regarding the implementation of the revised supply arrangements.
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