Big relief for industry: Govt restores commercial LPG supply after West Asia tensions cool

In a major relief for industry, the government has restored non-domestic packed LPG supply and relaxed bulk LPG curbs after improvement in the West Asia situation

PGurus Newsdesk

June 25, 2026

Bulk LPG supply has also been partially restored as improved domestic production and imported cargo availability ease pressure on fuel supplies

In a major relief for industrial and commercial consumers, the Centre on Thursday withdrew all restrictions on the supply of non-domestic packed LPG, restoring availability to levels that existed before the West Asia crisis.

The government also eased curbs on bulk LPG supply, which had been suspended when tensions in West Asia escalated. Bulk LPG supplies have now been restored up to 50 per cent of pre-crisis consumption levels, offering significant relief to businesses dependent on the fuel.

The Ministry of Petroleum and Natural Gas said the restrictions had originally been imposed during the West Asia crisis under the Essential Commodities Act. At the time, the government had directed that C3-C4 streams be used exclusively for LPG production, diverting them away from petrochemical and other downstream uses in order to safeguard domestic LPG availability.

With the regional situation improving, along with better indigenous LPG production and expected imported cargo availability, the Centre has now decided to scale back that diversion.

According to the ministry, the enhanced allocation of C3-C4 streams for non-LPG uses will be implemented while ensuring that domestic LPG supplies remain unaffected. It added that aggregate indigenous LPG production would be maintained at not less than 40 TMT per day.

The rollback of restrictions is expected to bring relief to several sectors that rely on commercial and industrial LPG, while also supporting petrochemical and downstream industries that were impacted by the earlier diversion of feedstock.

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