Govt lifts Iran war-linked curbs on commercial LPG

The Centre on Thursday lifted restrictions on the commercial supply of liquefied petroleum gas (LPG) cylinders, and eased the curbs on sale of bulk LPG to industrial customers, signalling that the energy crunch triggered by the blockade of the Strait of Hormuz has eased considerably.

- Rajeev Jayaswal

"In a major relief to industrial and commercial LPG consumers, Government has removed all sectoral restrictions on the supply of Non-Domestic Packed LPG and restored supplies to the levels prevailing prior to the West Asia crisis," the petroleum ministry said in a statement.

Packed LPG refers to the 19kg cylinders used by hotels, restaurants and industrial units.

The supply of bulk LPG, suspended at the onset of the crisis, has been relaxed to 50% of precrisis consumption levels, it added. Packed LPG generally refers to the 19kg cylinders used by hotels, restaurants and commercial units. Industries consuming more than 50 tonnes a month generally have bulk LPG facilities on their premises.

India imports about 60% of its LPG, almost 90% of which transits the Strait of Hormuz.

Petroleum secretary Neeraj Mittal wrote to chief secretaries of all states and union territories to ensure smooth implementation of the revised supply arrangements.

"It has now been decided to remove all sectoral restrictions on supply of non-domestic Packed LPG and restore it to pre-crisis levels. Further, restriction on supply of bulk LPG also stands relaxed by 50% of the pre-crisis consumption levels," he said in the letter.