Govt Restores Commercial LPG Supplies to Pre-Crisis Levels

Commercial liquefied petroleum gas supplies to businesses and hotels returned to pre-crisis levels on June 25, 2026, ending emergency rationing measures.

The government lifted sector-specific restrictions imposed during the recent West Asia conflict, PTI reported. The conflict disrupted shipments from West Asia, which accounts for about 90 per cent of India's cooking gas imports. The supply shock forced the government to prioritise household cooking gas. Supplies were subsequently restored in phases to about 70 per cent of normal levels, although several sectors continued to face curbs of up to 50 per cent of their usual allocations as authorities sought to conserve fuel stocks amid concerns over import availability. Bulk deliveries stopped.

Authorities have now partially resumed bulk LPG supply at 50 per cent of pre-crisis consumption levels. The supply of bulk LPG had been completely suspended at the onset of 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," the Petroleum Ministry said in a statement.

Relief for Refiners

The government reduced the diversion of C3 and C4 hydrocarbon streams to the LPG pool. This decision restores raw material allocations to petrochemical and downstream industries.

During the crisis, the government invoked the Essential Commodities Act to divert these streams exclusively for cooking gas. The mandate hit companies like Reliance Industries, which had to cut lucrative petrochemical production to boost LPG supplies. The emergency rules ended.

"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," the ministry said.

Despite the restored allocations, domestic LPG production must remain at not less than 40,000 tonnes per day. The Centre of High Technology will issue organisation-wise allocations of the enhanced C3 and C4 streams and submit regular reports to the ministry.

Pushing Piped Gas

The government directed oil marketing companies to maintain comprehensive databases of commercial and industrial LPG consumers. A unified sectoral database will also be maintained across the OMCs to strengthen monitoring and operational coordination. This tracking aims to facilitate efficient supply planning.

Eligible LPG consumers with access to piped natural gas networks will progressively transition to the new fuel. This migration will occur in coordination with city gas distribution (CGD) entities. The transition continues.

"At the same time, the government remains committed to expanding PNG connectivity. Commercial and bulk consumers who have already shifted to piped natural gas (PNG) will continue to remain on PNG," the ministry said.

To ensure smooth implementation, the Secretary of the Ministry of Petroleum and Natural Gas wrote to the chief secretaries of all states and union territories.