India restores commercial LPG supplies to pre-crisis levels as West Asia crisis pressures ease
The government on Thursday reinstated liquefied petroleum gas (LPG) supplies for commercial users, including hotels, restaurants and other businesses, to pre-crisis levels. It also removed
The government on Thursday reinstated liquefied petroleum gas (LPG) supplies for commercial users, including hotels, restaurants and other businesses, to pre-crisis levels. It also removed sector-specific curbs imposed during the recent West Asia conflict, signalling improving energy security and a stabilisation of global market conditions, PTI reported. The Petroleum Ministry, in a statement, said that restrictions on commercial LPG supplies had been lifted following an improvement in domestic production and the expected arrival of imported LPG cargoes. The supply of bulk LPG, which was halted at the beginning of the crisis, has now been partially restored to 50% of its pre-conflict consumption levels. The decision represents the latest effort by the government to roll back emergency measures introduced during the conflict, when concerns over potential supply disruptions in West Asia led authorities to prioritise the availability of cooking gas for households. The restrictions were imposed after the Iran conflict disrupted LPG supplies from West Asia, which accounts for about 90 per cent of India's cooking gas imports. To safeguard household consumption, the government initially halted supplies of commercial LPG to hotels, restaurants and industrial users, diverting available volumes to domestic consumers. 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, PTI reported.
Refineries were ordered to produce more LPG by diverting streams they would otherwise use for petrochemical production. "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 statement said. Also, "the supply of bulk LPG, which had been suspended at the onset of the crisis, has been relaxed by 50 per cent of the pre-crisis consumption levels, providing significant relief to commercial and industrial consumers," it said, adding that the restoration follows the recent improvement in the LPG supply situation. To boost LPG production during the crisis, the government had invoked powers under the Essential Commodities Act to direct that C3 and C4 hydrocarbon streams be used exclusively for LPG production, diverting feedstock away from petrochemical and other industrial uses. This move had hit companies like Reliance Industries hard. These refiners had to cut down their lucrative petrochemical production to boost LPG supplies. With supply conditions improving, authorities have now decided to reduce the diversion of C3-C4 streams to the LPG pool and restore allocations to petrochemical and other downstream industries, while ensuring domestic LPG production remains above 40,000 tonnes per day. "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 BriefWire