Centre restores commercial LPG supplies, lifts curbs imposed during Middle East crisis

NEW DELHI: The government on Thursday restored non-domestic packed LPG supplies to pre-Iran crisis levels and withdrew all sectoral restrictions.According to the ministry of petroleum and natural gas, the Oil Marketing Companies (OMCs) will now supply non-domestic packed LPG at normal levels, as seen before the crisis.“In a major relief to industrial and commercial LPG consumers, the Government has removed all sectoral restrictions on the supply of Non-Domestic Packed LPG and restored supplies to the levels prevailing prior to the West Asia crisis. Further, the supply of bulk LPG, which had been suspended at the onset of the crisis, has been relaxed to 50% of the pre-crisis consumption levels, providing significant relief to commercial and industrial consumers. The restoration follows the recent improvement in the LPG supply situation,” the ministry said.“During the West Asia crisis, to augment domestic LPG production, the Government had issued orders under the Essential Commodities Act requiring C3-C4 streams to be utilised exclusively for LPG production, diverting them from petrochemical and other downstream uses,” it added.The ministry further said that the government has also decided to reduce the diversion of C3/C4 streams to the LPG pool.“Taking note of the improved indigenous LPG production and the projected availability of imported LPG cargoes, the government has also decided to reduce the diversion of C3/C4 streams to the LPG pool,” it said.During the crisis, caused by Iran closing the Strait of Hormuz in response to US-Israeli strikes, the Centre imposed restrictions under the Essential Commodities Act.Meanwhile, the government has directed oil marketing companies to continue maintaining comprehensive data on commercial and industrial LPG consumers to facilitate efficient planning and supply management. A unified sectoral database will also be maintained across the OMCs to strengthen monitoring and operational coordination.Commercial and bulk consumers that have already shifted to Piped Natural Gas (PNG) will continue to remain on PNG. Other eligible LPG consumers with access to the PNG network, or those in the process of shifting to PNG, will be progressively transitioned to PNG in coordination with City Gas Distribution (CGD) entities, the statement added.