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India Restores Commercial LPG Supplies and Eases Bulk Limits

The ministry said the rollback was possible because domestic LPG output rose following progress in US‑Iran talks.

Overview

  • The government removed all sectoral restrictions on non‑domestic packed LPG and ordered Oil Marketing Companies to restore supplies to the levels prevailing before the West Asia crisis on June 25.
  • Bulk LPG that had been suspended for industrial and commercial users will be partially resumed at up to 50 percent of pre‑crisis consumption, giving factories, hotels and restaurants more fuel access.
  • Authorities will reduce the emergency diversion of C3 and C4 hydrocarbon streams back to petrochemical and other industries while keeping a minimum indigenous LPG production floor of 40,000 tonnes per day to protect household cooking gas.
  • The Centre has told the Centre for High Technology to issue organisation‑wise C3/C4 allocations and ordered OMCs to create a unified database of commercial and industrial LPG users to improve monitoring and planning.
  • Officials link the rollback to higher domestic output and clearer import prospects after US‑Iran talks reopened shipping through the Strait of Hormuz, a change that should ease pressure on petrochemical feedstocks and speed a longer term shift of commercial users to piped natural gas.