The government has taken a big decision for industrial and commercial LPG consumers. All regional restrictions on the supply of such LPG cylinders have been removed. Supply has now been fully restored to pre-West Asia crisis levels. This step will provide great relief to industries and commercial establishments.
Bulk LPG supply has also been restored up to 50 percent. Bulk LPG supplies were completely suspended during the crisis. According to the Ministry of Petroleum and Natural Gas, this restoration has been done following the recent improvement in the LPG supply situation. This will greatly benefit commercial and industrial consumers. This will help them in reducing their operating costs. This decision will increase the availability of gas in the market. This will boost production activities and give impetus to economic development.
What happened during the crisis?
At the time of the West Asia crisis, the government had issued special orders to increase domestic LPG production. This order was given under the Essential Commodities Act. In this, the use of C3-C4 streams was specifically mandated for LPG production. These streams were diverted from petrochemical and other downstream uses. This step was taken to meet the domestic LPG shortage in the country. Due to this the industries had to face some difficulties.
What will change now?
In view of the significant improvement in indigenous LPG production, the government has taken another important decision. The estimated availability of imported LPG consignments has also now increased significantly. The government has decided to reduce the diversion of C3-C4 streams into LPG reserves. Increased allocation of C3-C4 streams for non-LPG uses will now be implemented. This will also benefit other industries like petrochemicals and their production capacity will increase. This policy change will give impetus to the economy.
What will be the impact on domestic consumers?
The Ministry of Petroleum and Natural Gas has clarified that there will be no negative impact on the availability of domestic LPG. Total indigenous LPG production will not be kept less than 40 thousand metric tons per day. It will be ensured that common consumers do not face any kind of problem. The government will always give its top priority to domestic supplies. This decision will maintain balance in the market. Consumers will continue to get regular supply.