Govt lifts curbs on commercial LPG as supply improves

In a significant move bringing a sigh of relief to India's businesses, the government on Thursday completely lifted all sectoral restrictions on commercial LPG supply, restoring it to pre-crisis levels. This decision by the Ministry of Petroleum and Natural Gas signals the easing of a critical supply crunch triggered by the recent West Asia crisis and subsequent disruptions in key global shipping routes, primarily benefiting industries, hotels, and restaurants across the nation. These curbs, initially imposed in March 2026, had severely impacted commercial and industrial consumers, with allocations at one point slashed to as low as 20% of normal levels, and bulk LPG supplies entirely suspended. The government had invoked the Essential Commodities Act to divert crucial C3 and C4 hydrocarbon streams exclusively for domestic LPG production, safeguarding household consumption amidst global energy market volatility exacerbated by the US-Israeli war on Iran and the temporary closure of the Strait of Hormuz. The crisis had seen commercial LPG prices skyrocket and consumption dip sharply as businesses struggled to secure fuel. Looking ahead, this restoration is expected to reduce operational costs for businesses and boost industrial activity, although the government continues its strategic push for a long-term transition towards Piped Natural Gas (PNG) for eligible consumers. Oil Marketing Companies (OMCs) have been directed to maintain comprehensive data on commercial and industrial LPG users to ensure efficient planning and supply management, underscoring New Delhi's intent to prevent future disruptions while ensuring energy security.