Amid a ceasefire between the US and Iran, the Union government on Thursday, June 25, lifted all restrictions on the supply of industrial and commercial liquefied petroleum gas (LPG), restoring supplies to pre-crisis levels after months of curbs imposed due to disruptions linked to the Israel-US war against Iran.
“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,” the Ministry of Petroleum and Natural Gas said in a statement.
The Ministry attributed the decision to an improvement in the LPG supply situation and said Oil Marketing Companies (OMCs) have been directed to continue maintaining comprehensive data on commercial and industrial LPG consumers to enable efficient planning and supply management.
“A unified sectoral database will also be maintained across the OMCs to strengthen monitoring and operational coordination,” the statement said.
The government reiterated its commitment to expanding Piped Natural Gas (PNG) connectivity.
“Commercial and bulk consumers who have already shifted to Piped Natural Gas (PNG) will continue to remain on PNG. Other eligible LPG consumers having 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.”
At the height of the supply crisis in early March, the government had imposed temporary restrictions on commercial LPG supplies as part of its crisis management measures. The curbs were subsequently eased in phases, with supplies gradually restored to 70% of pre-crisis levels, including a conditional 10% allocation to States and Union Territories to support a faster transition to PNG.
The government also withdrew its earlier directive requiring propane and butane—used across multiple industries—to be reserved exclusively for domestic LPG production, easing supply constraints for other sectors.