The Union government on Thursday removed all restrictions and restored supplies of non-domestic packed liquefied petroleum gas as they stood before the war in West Asia.
The decision is expected to provide relief for restaurants, hotels and other businesses.
The Ministry of Petroleum and Natural Gas said that restrictions on bulk LPG supplies have also been eased, with supplies restored to 50% of pre-crisis consumption levels.
“The restoration follows the recent improvement in the LPG supply situation,” the government said.
During the West Asia crisis, the government had used emergency powers under the Essential Commodities Act to ensure certain hydrocarbon streams were used only for liquefied petroleum gas production instead of petrochemicals and other industries to boost domestic LPG supplies.
With the supply improving amid the peace talks between the United States and Iran, the government has decided to reduce the diversion of hydrocarbon streams to the LPG pool.
It said that this would be done without affecting domestic LPG availability and while maintaining indigenous liquefied petroleum gas production at no less than 40,000 metric tons per day.
“Since the onset of global supply disruptions arising from the West Asia crisis, [the] government has accorded the highest priority to ensuring uninterrupted availability of LPG to domestic consumers across the country,” the ministry said.
Oil marketing companies have been told to keep detailed records of commercial and industrial LPG consumers. They will also maintain a shared sectoral database to improve supply planning and management.
Moreover, the government said it would continue expanding the use of piped natural gas. Commercial and bulk consumers that have already switched to piped natural gas will remain on the network. Other eligible LPG users with access to PNG will gradually be transitioned in coordination with city gas distribution companies, it said.
India imports half of its natural gas requirements and 88% of its crude oil needs. This mostly comes through the Strait of Hormuz, which had been effectively blocked since the conflict in West Asia began on February 28.
However, the US and Iran last week held an initial round of talks in Switzerland aimed at reaching a final peace deal. The two countries will establish a communication channel “to avoid incidents and miscommunication with the aim of safe passage for commercial vessels” through the Strait of Hormuz, mediators Pakistan and Qatar said.
The supply disruption during the crisis had pushed up LPG prices. In March, the price of a 14.2 kg domestic LPG cylinder increased by Rs 60, followed by a further Rs 29 rise in June, taking the price in Delhi to Rs 942 per cylinder.
The price of a 19 kg commercial LPG cylinder increased several times in recent months, including a Rs 1,000 rise in May. It currently costs Rs 3,113.5 in Delhi.
Written by Sara Varghese. Edited by Nachiket Deuskar.
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