The central government has removed all restrictions on LPG supply. In particular, regional restrictions on the supply of packaged LPG for purposes other than domestic use have been removed. The level of supply that was there before the crisis caused by the Iran-US dispute has now been restored. As restrictions have been lifted, bulk LPG supplies – which were halted at the beginning of the crisis – have also resumed; It has been opened up to 50% of pre-crisis consumption levels. This decision of the government will provide a lot of relief to commercial and industrial customers.
Which order had the government issued earlier?
To increase domestic production during the crisis, the government had issued an order under the ‘Essential Commodities Act’. The order stated that the C3-C4 stream should be used only for LPG production and not for petrochemicals and other purposes.
Improvement in domestic LPG production
With improvement in domestic LPG production and expected arrival of imported LPG cargo, the government has decided to reduce the use of C3-C4 stream in the LPG pool. Now these streams will be allocated more to the petrochemical sector and other essential industries.
What impact will this decision have on the general public?
It is important to note that this decision applies to commercial and industrial LPG as well as the petrochemical sector. There will be no adverse impact on the supply or price of domestic gas cylinders used by the general public.
