The government has restored non-domestic packed LPG supplies to pre-crisis levels, easing restrictions for commercial and industrial consumers as domestic production and imports improve.

India Restores Non-Domestic LPG Supplies to Pre-Crisis Levels

The government has announced the restoration of India's non-domestic packed Liquefied Petroleum Gas (LPG) supplies to pre-crisis levels, bringing relief to industrial and commercial consumers throughout the country. This decision comes after LPG production has increased locally and LPG import cargoes have become available.

In response to the West Asia crisis, the government had already put in place a cap on the supply of non-domestic packed LPG and a halt to bulk LPG supplies to ensure sufficient supply of cooking gas to homes. A temporary provision was also introduced under certain provisions of the Essential Commodities Act to ensure uninterrupted supplies of LPG in the country by diverting the C3 and C4 hydrocarbon stream for LPG production.

The government has lifted all the restrictions imposed on non-domestic packed LPG in a number of sectors, given that the supply situation is now stable. Bulk LPG supplies, which were paused during the crisis, have also been restored to 50 percent of pre-crisis consumption for the benefit of a number of industries, as well as some hotels and restaurants, and commercial buildings.

It has directed the Ministry of Petroleum and Natural Gas to inform states and Union Territories (UTs) regarding the revised supply arrangements so that the implementation of the revised supply arrangements proceeds smoothly. The decision comes as a result of the government's policy of balancing both national energy security and the needs of businesses and consumers, the government said.

C3 and C4 streams diverted for LPG production will also be cut in consideration of better indigenous production and the expected arrival of imported LPG shipments, the officials added. This is expected to benefit petrochemical industries and provide reasonably adequate LPG supply.

It is hoped that the restoration of LPG supplies will enhance business operations and supply chains and mitigate the impact of the earlier restrictions on commercial consumers. The government reiterated its pledge to providing a reliable, affordable and uninterrupted supply of cleaner fuels across the country without compromising the nation's long-term energy security and economic growth.

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