Centre removes ban on packaged LPG for commercial use
New Delhi, June 25: In a major relief to industrial and commercial LPG consumers, the government has lifted all regional restrictions on the supply of non-domestic packaged LPG and restored supplies to pre-Middle East crisis levels.
Furthermore, bulk LPG supplies, which were suspended at the beginning of the crisis, have been restored to 50 percent of consumption levels. This will provide significant relief to commercial and industrial consumers.
During the Middle East crisis, the government issued orders under the Essential Commodities Act to increase domestic LPG production. This required the diversion of C3-C4 streams from petrochemical and other uses to LPG production only. Considering the improvement in domestic LPG production and the anticipated availability of imported LPG cargoes, the government has also decided to reduce the diversion of C3/C4 streams from the LPG pool.
The increased allocation of C3-C4 streams for non-LPG uses will be implemented while ensuring that domestic LPG availability remains unaffected and total domestic LPG production does not fall below 40 metric tons per day.
The Centre for High Technology under the Ministry has been directed to release organization-wise allocation of these increased C3/C4 streams for petrochemicals and other critical sectors and submit regular reports to the Ministry.
The Ministry of Petroleum and Natural Gas issued a release stating that the government has directed oil marketing companies to maintain comprehensive data on commercial and industrial LPG consumers to facilitate efficient planning and supply management. An integrated regional database will also be maintained across OMCs to strengthen monitoring and operational coordination.
The Ministry states that the government is committed to expanding PNG connectivity. Commercial and bulk consumers who have already switched to pipeline natural gas (PNG) will remain on PNG. Other eligible LPG consumers having access to PNG networks or in the process of switching to PNG will be gradually switched 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, requesting them to ensure smooth implementation of the revised supply arrangement.
