Govt restores commercial LPG supplies to pre-crisis levels
LUCKNOW, June 26 -- The Centre has restored commercial Liquefied Petroleum Gas (LPG) supplies to pre-crisis levels, withdrawing temporary restrictions imposed during supply disruptions linked to the recent Middle East crisis. The move is expected to bring relief to hotels, restaurants, bakeries and industries that were forced to switch to alternative fuels amid shortages.
In a communication issued to all states and Union Territories on Thursday, petroleum and natural gas secretary Dr Neeraj Mittal announced the withdrawal of sectoral restrictions on non-domestic packed LPG, stating that the supply situation had improved.
The restrictions were introduced on March 23, 2026, after disruptions in global energy supply chains raised concerns over LPG availability. To ensure uninterrupted household cooking gas supplies, the government curtailed allocations for commercial consumers.
Before the restrictions, Uttar Pradesh received around 50,000 metric tonnes of commercial LPG every month. However, supplies dropped sharply during April and May, forcing businesses to rely on diesel and coal-based systems to maintain operations.
"The restrictions created significant challenges for industries. Several units invested in diesel and coal-based systems to keep production running," said Adnan Danish, vice-president of the Lucknow chapter of the Indian Industries Association (IIA).
Rajkumar Piplani of Brajwasi Bakery in Talkatora, Lucknow, said businesses had little choice but to switch fuels.
"We switched to coal and diesel furnaces because there was no alternative. The priority was to keep the business running and ensure production was not disrupted," he said.
With energy supplies stabilising, the ministry of petroleum and natural gas has directed oil marketing companies (OMCs) to restore supplies of non-domestic packed LPG cylinders to pre-crisis levels with immediate effect.
Restrictions on bulk LPG have also been partially relaxed, allowing consumption up to 50% of pre-crisis levels.
"The restoration of the full quota is a welcome step. However, industries that shifted to alternate fuels will now have to invest again to return to LPG operations," Danish said.
Even as LPG supplies return to normal, the government is continuing to promote Piped Natural Gas (PNG).
Bhodro Lakra, chief general manager (LPG), Indian Oil Corporation, said commercial and industrial consumers that have already migrated to PNG will not be permitted to switch back to LPG.
Lakra said OMCs will maintain a unified database of commercial and industrial LPG consumers and work with city gas distribution entities to accelerate the migration of eligible customers to PNG. Regular progress reports will also be submitted to the ministry as part of the transition plan....
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