LPG – Government Fully Restores Commercial Cooking Gas Supply After Import Concerns Ease
LPG – India has restored commercial LPG distribution to normal levels after improvements in domestic production and a more stable import outlook eased concerns triggered by the recent West Asia conflict. The government announced that restrictions imposed on commercial and industrial consumers during the supply disruption have now been withdrawn, while household cooking gas availability will continue to receive top priority.
Commercial LPG Distribution Returns to Normal
According to the Petroleum Ministry, supplies of non-domestic packaged LPG to hotels, restaurants and other commercial establishments have been brought back to the levels seen before the regional conflict affected global energy markets. In addition, bulk LPG deliveries, which had been suspended when supply pressures intensified, have resumed at 50 percent of their earlier allocation, offering significant relief to industries dependent on the fuel.
The ministry stated that the decision follows a noticeable improvement in both indigenous LPG production and the expected arrival of imported cargoes, helping strengthen the country’s overall supply position.
Restrictions Introduced During West Asia Supply Concerns
The temporary restrictions were introduced after tensions involving Iran disrupted confidence in energy supplies from West Asia, a region that accounts for nearly 90 percent of India’s LPG imports. To avoid any impact on domestic cooking gas users, authorities diverted supplies from commercial and industrial consumers to households.
Over the past few weeks, commercial LPG availability had gradually improved to around 70 percent of normal levels. However, several sectors continued to operate under reduced allocations until the latest policy revision.
Refinery Production Strategy Being Relaxed
As part of the emergency response, the government had instructed refineries to increase LPG production by redirecting C3 and C4 hydrocarbon streams from petrochemical manufacturing under provisions of the Essential Commodities Act. The move affected several refiners and petrochemical producers, including Reliance Industries, which adjusted production to support additional LPG output.
With the supply situation now stabilising, the government has decided to reduce the diversion of these hydrocarbon streams. Officials confirmed that more C3 and C4 material will once again be available for petrochemical and other industrial applications while ensuring that daily indigenous LPG production remains above 40,000 tonnes and household requirements continue to be fully protected.
Monitoring and Industry Coordination
The Centre for High Technology has been assigned the responsibility of issuing revised C3 and C4 allocations to petrochemical companies and other downstream industries. The organisation will also oversee implementation through regular monitoring and reporting to ensure smooth execution of the revised supply framework.
The ministry noted that coordinated efforts by oil marketing companies helped maintain uninterrupted LPG supplies despite disruptions in international supply chains during the crisis.
Energy Market Conditions Show Improvement
The government’s decision comes as pressure in global energy markets continues to ease. Crude oil prices have retreated to levels seen before the conflict, concerns over fuel availability have reduced, and international shipping routes have become more stable, improving confidence in future energy supplies.
PNG Expansion Remains a Long-Term Priority
While restoring commercial LPG availability, the government has reaffirmed its commitment to expanding the use of piped natural gas across commercial and industrial sectors. Businesses that have already shifted to PNG will continue using the cleaner fuel, while other eligible consumers located within existing gas distribution networks will gradually transition to PNG in coordination with city gas distribution companies.
The Petroleum Secretary has also written to chief secretaries of all states and Union Territories, requesting support for the implementation of the revised supply arrangements to ensure efficient distribution across the country.