Commercial LPG Supply Restored As Govt Lifts Curbs
New Delhi, June 26, 2026: Industrial and commercial LPG users have received relief after the Centre restored non-domestic packed LPG supply to the levels available before the West Asia crisis.
The decision comes after the government reviewed fuel availability and found improvement in both domestic LPG production and imported LPG supplies. With the supply situation easing, restrictions introduced to protect household cooking gas availability have now been withdrawn.
Govt Removes Restrictions On Commercial LPG
The Ministry of Petroleum and Natural Gas has removed all sector-specific restrictions on the supply of non-domestic packed LPG.
This means hotels, restaurants, small businesses, canteens, food outlets, and other commercial users can now receive commercial LPG supplies as they did before the crisis.
The move is expected to help businesses that were facing supply pressure due to temporary limits placed during the global energy disruption.
Bulk LPG Supply Restored Up To 50%
The government has also relaxed restrictions on bulk LPG supply.
Industrial and commercial consumers using bulk LPG will now be eligible to receive up to 50% of their pre-crisis consumption level. This is expected to support sectors that depend on LPG for production, heating, and daily operations.
Why LPG Restrictions Were Introduced
The restrictions were introduced after the West Asia crisis affected global energy supply chains and created uncertainty over LPG availability.
To ensure households did not face a cooking gas shortage, the government had temporarily prioritised domestic LPG supply. It also directed C3 and C4 hydrocarbon streams to be used mainly for LPG production instead of petrochemical and other industrial uses.
Officials said the earlier steps helped maintain stable household LPG availability during the supply pressure.
Domestic LPG Supply Remains Priority
Even though commercial LPG supply has been restored, the government has said household cooking gas availability will continue to remain a priority.
The revised arrangement aims to support commercial and industrial users without affecting domestic LPG supply.
PNG Shift To Continue
The Centre has also reaffirmed its push for Piped Natural Gas, or PNG, especially for commercial and industrial consumers located in areas with city gas distribution networks.
Businesses that have already shifted to PNG will continue using it. Other eligible consumers with access to PNG networks may be gradually moved from LPG to PNG in coordination with City Gas Distribution companies.
The government believes this will help improve energy efficiency while ensuring LPG is available for consumers who need it most.
OMCs Asked To Track Commercial LPG Users
Oil Marketing Companies have been asked to maintain detailed records of commercial and industrial LPG consumers.
A common database across OMCs will help improve planning, monitoring, and supply management. The Petroleum Secretary has also written to Chief Secretaries of states and Union Territories for smooth implementation of the revised supply system.
What This Means For Businesses
The restoration of commercial LPG supply is likely to benefit restaurants, hotels, small businesses, industrial units, and other non-domestic consumers.
For businesses affected by limited LPG availability during the crisis, the decision may ease operational pressure and help bring supply conditions closer to normal.
