New Delhi: The government has withdrawn all sectoral restrictions on the supply of non-domestic packed LPG and restored it to pre-crisis levels, while relaxing curbs on bulk LPG to 50 percent of pre-crisis consumption, the Ministry of Petroleum and Natural Gas said on Thursday. The rollback follows a recent improvement in the LPG supply situation as the West Asia crisis recedes.
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Bulk LPG supply, which had been suspended entirely at the onset of the crisis, has now been relaxed to half of pre-crisis levels — leaving commercial and industrial users with partial relief on that count, against full restoration for packed LPG.
During the crisis, the government had invoked the Essential Commodities Act to require that C3-C4 streams be used exclusively for LPG production, diverting them from petrochemical and other downstream uses. (C3 and C4, which are propane and butane, are both LPG components and petrochemical feedstock.)
Citing improved indigenous LPG production and the projected availability of imported LPG cargoes, the government has now decided to reduce the diversion of C3/C4 streams to the LPG pool, freeing more of the feedstock for petrochemical and other critical sectors.
The ministry said 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."
The Centre of High Technology (CHT), a body under the ministry, has been directed to issue organisation-wise allocation of the enhanced C3/C4 streams for the petrochemical and other critical sectors, and to submit regular reports to the ministry.
Since the onset of global supply disruptions from the West Asia crisis, the government said it had accorded the highest priority to uninterrupted LPG for domestic consumers, and that temporary restrictions on commercial packed LPG were imposed to that end. It credited timely policy interventions and coordinated efforts by Oil Marketing Companies (OMCs) with keeping supplies stable through the disruption.
The government has directed OMCs to continue maintaining comprehensive data on commercial and industrial LPG consumers to aid supply planning, and to maintain a unified sectoral database across OMCs to strengthen monitoring and operational coordination.
The government reaffirmed its push to expand Piped Natural Gas (PNG) connectivity. Commercial and bulk consumers who have already shifted to PNG will remain on it. Other eligible LPG consumers with access to the PNG network, or those in the process of switching, will be progressively transitioned to PNG in coordination with City Gas Distribution (CGD) entities.
Petroleum Secretary Dr Neeraj Mittal has written to the Chief Secretaries of all states and Union Territories to ensure smooth implementation of the revised supply arrangements, said a statement.
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The decision, the ministry said, "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."