Key Highlights:
- The government has lifted all sectoral restrictions on non-domestic packed LPG supply.
- Commercial LPG supply is now back to pre-crisis levels across India.
- Bulk LPG fully suspended during the crisis now resumes at 50% of earlier levels.
- West Asia supplies about 90% of India's LPG imports. The conflict there caused the shortage.
- Household LPG supply stays fully protected. Domestic production must stay above 40,000 metric tonnes per day.
India's commercial LPG supply is back. The government lifted all restrictions on June 25, 2026. Hotels, restaurants, factories, and businesses can now access non-domestic LPG at pre-crisis levels. The West Asia crisis caused the shortage. It disrupted India's imports. The government acted fast to protect household supply. Commercial users bore the burden. Now that burden lifts.
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What Started the Crisis?
The West Asia conflict disrupted shipments that account for about 90% of India's cooking gas imports. The supply shock forced the government to prioritise household cooking gas.
The government had no choice. Household cylinders had to come first. So commercial supply got cut.
The government issued orders under the Essential Commodities Act. These orders required C3-C4 streams to be used only for LPG production.
This diverted them away from petrochemical and other downstream industries. Companies like Reliance Industries had to cut their petrochemical output. All to keep home kitchens running. It was a tough call. It worked.
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What the Government Has Done Now
The situation has improved. Imports are stable. Domestic production is up. So the government is easing controls.
Three things change immediately:
- All sectoral restrictions on non-domestic packed LPG are removed. Supply returns to pre-crisis levels.
- Bulk LPG supply which was fully suspended now resumes at 50% of pre-crisis levels. This brings relief to large commercial and industrial users.
- The government will reduce the diversion of C3-C4 streams into the LPG pool. Petrochemical firms get their raw materials back.
LPG Household Supply Is Safe
The government is clear on one point. Restoring commercial LPG does not mean cutting household supply. Domestic LPG production will continue at no less than 40,000 metric tonnes per day. Household supply stays fully protected.
The Centre of High Technology has been directed to issue organisation-wise allocation of C3-C4 streams for petrochemical and other critical sectors. It will submit regular reports to the ministry.
Stronger Monitoring Going Forward
The government is not walking away from oversight. It is tightening it. Oil Marketing Companies must maintain detailed records of all commercial and industrial LPG consumers. A unified database will be maintained across all OMCs. This will improve planning and supply coordination.
Data will drive decisions. Not guesswork.
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PNG Transition Continues
The government also wants eligible users to shift to Piped Natural Gas over time.
Commercial and bulk consumers who have already moved to PNG will stay on PNG. Other eligible consumers with access to the PNG network will shift progressively. City Gas Distribution entities will coordinate this transition.
The Secretary of the Ministry of Petroleum and Natural Gas has written to all State Chief Secretaries. The letter asks them to ensure smooth implementation of the new supply arrangements.
The direction is clear. Restore commercial LPG now. Move eligible users to PNG over time. Keep households fully supplied — always.