In a significant move offering relief to industrial and commercial consumers, the Indian government has fully restored the supply of Non-Domestic Packed LPG to levels seen before the recent West Asia crisis. Concurrently, the suspension on bulk LPG supply has been partially relaxed, now allowing up to 50% of pre-crisis consumption.
LPG Supply Stabilizes After Crisis Measures
The decision follows a marked improvement in the nation's LPG supply situation. During the West Asia crisis, the government prioritized ensuring uninterrupted LPG availability for domestic consumers. This led to temporary restrictions on commercial packed LPG and orders under the Essential Commodities Act, diverting C3-C4 streams primarily for LPG production, away from petrochemical and other downstream uses.
With indigenous LPG production now robust and imported LPG cargoes readily available, the government has opted to reduce the diversion of C3-C4 streams. This enhanced allocation for non-LPG uses will proceed while strictly maintaining domestic LPG availability and an aggregate indigenous production of at least 40 TMT per day.
Strategic Planning and Future Outlook
The Centre of High Technology, operating under the Ministry of Petroleum and Natural Gas, has been tasked with issuing organization-wise allocations for the enhanced C3-C4 streams to critical sectors like petrochemicals, with regular reporting to the ministry.
Oil Marketing Companies (OMCs) have been directed to continue maintaining comprehensive data on commercial and industrial LPG consumers. This unified sectoral database across OMCs aims to bolster efficient planning, supply management, and operational coordination. The government reaffirmed its commitment to expanding Piped Natural Gas (PNG) connectivity, encouraging eligible LPG consumers to transition to PNG in coordination with City Gas Distribution entities.
These revised measures, communicated to Chief Secretaries of all states and Union Territories, underscore a balanced approach: restoring non-domestic LPG, partially resuming bulk supply, easing C3-C4 stream diversion, all while ensuring domestic LPG stability and promoting PNG adoption.