New Delhi, June 25 -- The government on Thursday relaxed restrictions on the sale of liquefied petroleum gas (LPG) to commercial users, amid expectations of a potential US-Iran peace deal that could restore energy flows through the Strait of Hormuz.

The move is expected to bring relief to restaurants, eateries, hotels and other LPG-using industries, as well as pharmaceuticals, petrochemicals and related industries.

Restrictions on bulk LPG supply - typically used by large industries - have been eased to 50% of pre-crisis consumption levels, according to a 25 June letter from oil secretary Neeraj Mittal to chief secretaries of states and Union territories.

"As you are aware, during the period of supply disruptions arising from the West ...