Centre Restores Non-Domestic LPG Supply To Pre-Crisis Levels, Eases Bulk LPG Restrictions

Industrial and commercial consumers across India have received significant relief after the Centre restored the supply of non-domestic packed LPG to pre-crisis levels. The government has also lifted all sectoral restrictions that were imposed during the West Asia conflict, citing an improvement in domestic production and imported LPG availability.

Non-Domestic LPG Supply Back To Normal

The Ministry of Petroleum and Natural Gas announced that Oil Marketing Companies (OMCs) will resume supplying non-domestic packed LPG at the same levels that existed before the West Asia crisis disrupted fuel availability.

The decision comes after the LPG supply situation stabilised following the easing of tensions linked to the US-Israel conflict with Iran, which is currently on hold under a Memorandum of Understanding.

The Centre has also directed all States and Union Territories to ensure the smooth implementation of the revised LPG distribution system so that supplies reach consumers without disruption.

Bulk LPG Restrictions Partially Relaxed

Along with restoring packed LPG supplies, the government has eased restrictions on bulk LPG distribution for industrial and commercial consumers.

Bulk LPG, whose supply had been suspended during the crisis, will now be available up to 50 per cent of pre-crisis consumption levels. Officials believe the move will help industries resume normal operations while ensuring businesses have better access to fuel.

Government Revises C3-C4 Allocation Policy

During the peak of the West Asia crisis, the government had invoked the Essential Commodities Act to direct that C3-C4 hydrocarbon streams be used exclusively for LPG production. This meant diverting these resources away from petrochemical and other downstream industries to strengthen domestic LPG availability.

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. Further, the supply of bulk LPG, which had… pic.twitter.com/CyhdnnrxS2

— ANI (@ANI) June 25, 2026

With indigenous LPG production improving and imported cargoes expected to remain stable, the government has now decided to reduce the diversion of C3-C4 streams into the LPG pool.

According to the Ministry of Petroleum and Natural Gas, the revised allocation will increase the availability of C3-C4 streams for non-LPG industries while ensuring that domestic LPG supplies remain unaffected. The ministry also said indigenous LPG production will continue to be maintained at no less than 40 thousand metric tonnes per day.

Relief For Businesses Across Sectors

The latest measures are expected to provide considerable relief to industries, hotels, restaurants and other commercial establishments that rely on LPG for daily operations.

By restoring normal supplies of non-domestic packed LPG and partially reviving bulk LPG distribution, the government aims to balance industrial demand with household fuel security while maintaining adequate domestic production and import support.