1.
Relief
for Commercial & Industrial Consumers: The Government has removed all sectoral restrictions
on the supply of Non-Domestic
Packed LPG (NDPL), restoring supplies to pre-West Asia crisis levels.
2.
Bulk
LPG Supply Relaxed:
Supply of bulk LPG,
which had been suspended at the beginning of the West Asia crisis, has now been
restored to 50% of
pre-crisis consumption levels.
3.
Reason
for Restoration: The
decision follows:
o Improvement in the domestic LPG supply
situation.
o Better availability of imported LPG
cargoes.
4.
Earlier
Emergency Measures:
During the West Asia crisis, the Government invoked the Essential Commodities Act
to mandate that C3-C4
hydrocarbon streams be used exclusively for LPG production,
diverting them away from petrochemical and other industrial uses.
5.
Reduced
Diversion of C3-C4 Streams:
With improved supply conditions, the Government has decided to reduce the diversion of C3-C4 streams to
the LPG pool, allowing more feedstock for petrochemical and
other critical industries.
6.
Minimum
LPG Production Maintained:
Even after easing restrictions, indigenous LPG production will be maintained at
not less than 40 thousand
metric tonnes (TMT) per day, ensuring uninterrupted domestic
availability.
7.
Role
of Centre of High Technology (CHT):
o Directed to allocate the enhanced C3-C4
streams among organisations.
o Responsible for monitoring allocations and
submitting regular reports to the Ministry.
8.
Government's
Crisis Response:
Throughout the West Asia crisis, the Government prioritised uninterrupted LPG
supply for domestic households through:
o Temporary restrictions on commercial LPG.
o Coordinated efforts by Oil Marketing Companies (OMCs)
to stabilise supplies despite global disruptions.
9.
Improved
Supply Management: OMCs
have been directed to:
o Maintain comprehensive data on commercial
and industrial LPG consumers.
o Develop a unified sectoral database to improve
planning, monitoring and coordination.
10. Promotion of PNG: The Government continues to promote Piped Natural Gas (PNG)
by:
o Keeping consumers already shifted to PNG
on the PNG network.
o Gradually transitioning other eligible LPG
consumers to PNG through City
Gas Distribution (CGD) entities.
11. Implementation: The Secretary, Ministry of Petroleum and Natural Gas,
has written to all Chief
Secretaries of States and Union Territories to ensure smooth
implementation of the revised supply arrangements.
12. Overall Objective: The policy seeks to:
o Strengthen national energy security.
o Balance household and industrial energy
needs.
o Expand access to cleaner, safer and more
efficient fuels.
·
Ministry: Ministry of Petroleum and Natural Gas
·
Key
Decision:
Removal of sectoral restrictions on Non-Domestic Packed LPG
·
Bulk
LPG Supply:
Restored to 50% of
pre-crisis consumption
·
Legal
Basis for Earlier Restrictions:
Essential Commodities Act
·
Hydrocarbon
Streams Involved: C3-C4
streams
·
Minimum
Indigenous LPG Production:
40 TMT per day
·
Implementing
Agency:
Centre of High Technology (CHT)
·
Supporting
Agencies: Oil
Marketing Companies (OMCs)
·
Alternative
Clean Fuel: Piped
Natural Gas (PNG)
·
Implementation
Support: City
Gas Distribution (CGD) entities
·
Policy
Goal:
Ensure energy security while promoting cleaner fuel adoption.
In a major relief to industrial and commercial
LPG consumers, 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 by 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.
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.
Taking note of the improved indigenous
LPG production and the projected availability of imported LPG cargoes, Government
has also decided to reduce the diversion of C3/C4 streams to LPG pool.
The enhanced allocation of C3-C4 streams
for non-LPG uses will be implemented while ensuring that the domestic LPG availability
remains unaffected and aggregate indigenous LPG production is maintained at not
less than 40 TMT per day.
Centre of High Technology under the ministry
has been directed to issue organisation wise allocation of this enhanced C3/C4 streams
for the petrochemical and other critical sectors and submit regular reports to the
Ministry.
Since the onset of global supply disruptions
arising from the West Asia crisis, Government has accorded the highest priority
to ensuring uninterrupted availability of LPG to domestic consumers across the country.
In line with this, temporary restrictions were imposed on the supply of commercial
packed LPG. The timely policy interventions and coordinated efforts by Oil Marketing
Companies (OMCs) helped maintain stable supplies despite challenging global supply
chains.
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.
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. 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.
In this regard, the Secretary, Ministry
of Petroleum and Natural Gas, has written to the Chief Secretaries of all States
and Union Territories for ensuring smooth implementation of the revised supply arrangements.
The decision reflects the Government's
conscious approach towards ensuring national energy security while balancing the
energy needs of the nation with its continued commitment to expanding access to
cleaner, safer and more efficient fuels.