Govt restores commercial LPG supplies to pre-West Asia crisis levels, lifts sectoral curbs

In a huge relief to commercial users, the government on Thursday restored supplies of non-domestic packed LPG to pre-crisis levels and withdrew sector-wise restrictions imposed during the West Asia conflict.

It also eased the suspension on bulk LPG supplies, allowing supply of up to 50% of pre-crisis consumption levels for commercial and industrial consumers, according to the Ministry of Petroleum and Natural Gas.

The decision was taken after improvement in the LPG supply situation, supported by higher domestic production and expected availability of imported LPG cargoes, an official statement said.

During the West Asia crisis, the government had invoked the Essential Commodities Act to direct that C3-C4 streams be used only for LPG production. This meant diverting feedstock away from petrochemical and other downstream sectors to boost domestic LPG availability.

Following the reopening of Strait of Hormuz, the government has now decided to reduce the diversion of C3-C4 streams to the LPG pool and allow higher allocation of these streams to petrochemical and other critical sectors.

The ministry said the enhanced allocation for non-LPG uses would be implemented while ensuring that domestic LPG availability remains unaffected and indigenous LPG production stays at not less than 40 thousand metric tonnes per day.

The government said that since the start of global supply disruptions arising from the West Asia crisis, it had given top priority to ensuring uninterrupted LPG availability for domestic consumers across the country.

It had imposed temporary restrictions on commercial packed LPG supplies.

The government has also asked oil marketing companies to continue maintaining detailed data on commercial and industrial LPG consumers to help in planning and supply management.

A unified sectoral database will also be maintained across the companies to strengthen monitoring and coordination.

The government said it remains committed to expanding piped natural gas (PNG) connectivity.

Commercial and bulk consumers who have already shifted to PNG will continue to remain on PNG.

Other eligible LPG consumers who have access to PNG networks, or are in the process of shifting, will be progressively moved to PNG in coordination with city gas distribution entities, it added.